With all the economic uncertainty around the world, one market has become the go-to ‘safe haven’ for wealthy investors: luxury housing.
In a recent Forbes article, Morgan Brennan takes a look at the growing trend of billionaires turning to uber-luxury real estate as a “safe, relatively low-risk place to park cash that hedges against inflation while diversifying an investment portfolio.”
Brennan asked The Agency’s Mauricio Umansky to share what he’s experiencing here in Los Angeles with his clients:
“All of my clients call it a hedge against every other market. They see real estate as a hedge against inflation, against the commodities markets, and a safe haven from international political risk.”
What properties are investors most interested in as a safe haven? Brennan says they’re looking for “highly unique, irreplaceable structures” … “on coveted swaths of land in desirable internationally recognized locales like New York, Miami, San Francisco, and Los Angeles.”
In Los Angeles, Brennan notes, some buyers, particularly from Asia, are most interested in projects like The Ritz Carlton Residences at L.A. LIVE (photo above) that have been “alluring for the sense of stability a global brand name elicits.” The luxury residential tower offers the hospitality and level of services discerning individuals come to expect from The Ritz-Carlton brand, including valet parking, concierge, in-room dining service & housekeeping. Complementing this exceptional experience are a rooftop swimming pool and cabanas, fully-equipped fitness center, 8,000 sq ft full-service spa & salon, executive boardroom, multi-media screening room and residents’ lounge.
Read the full Forbes article here.