Since the global credit crunch began five years
ago, interest rates have remained near historic
lows as central banks around the world have been
working to stimulate a broad economic recovery.
International and domestic investors have grappled
with anemic returns on cash instruments, tight
credit policy, and the continued volatility of global
financial markets. With limited options, these
investors have looked to a variety of hard assets
to provide more reasonable returns. Although
the world’s financial institutions continue to be risk-averse, the luxury
investor populace and related wealth management institutions have
sought out new opportunities, including real estate as an investment
strategy in the “search for upside in a low return world.” A key beneficiary
of this trend has been the growth of luxury real estate…