The most preferred wealth store in real estate; digital only 4%

Net worth tripled between 2000 and 2020 to reach $ 510 trillion, or 6.1 times global GDP, with China accounting for a third of global growth. Households are the final owners of 95% of equity, half in real assets, mostly housing, and the rest in financial assets such as equity, deposits, and pension funds. Per capita net worth ranged from $ 46,000 in Mexico to $ 351,000 in Australia. In China and the United States, the richest 10% of households owned two-thirds of the wealth.

This has raised questions about whether corporations are storing their wealth productively. The value of residential real estate was almost half of global net worth in 2020, while buildings and land for businesses and government accounted for an additional 20%. The assets that drive much of economic growth – infrastructure, industrial structures, machinery and equipment, intangible assets – along with mineral stocks and reserves make up the rest.

The case in India

“This certainly isn’t happening here in India,” says Rohit Sarin, co-founder of Delhi-based multi-family office firm, Client Associates.

Experts say Indian money – much of it new age and retail – is shifting away from real estate, drawn more to light tech companies. This is a distinct departure from the findings of the McKinsey report focused on our Western counterparts.

“In India, additional flows of real estate are decreasing,” says Sarin, “in fact, people are divesting or buying houses they can live in.” He says that if they sell, they monetize and acquire more wealth and assets for their personal use and not for storing their wealth.

“In continental Europe, real estate is privileged because for them protection is a more important objective than growth. Whereas in the United States, growth is more important than protection and stocks offer more growth than any other asset, even real estate, ”says Sarin.

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