New research has revealed how tech professionals could be ‘prop’ing up real estate investment. A survey of 450 high net worth individuals* carried out by leading UK property developer SevenCapital across different industries and around the globe revealed that the highest proportion of those who identified as property investors work in the IT and Telecoms industry.
59% of all those surveyed who invest, say they invest in property. Of these, just under one quarter (23%) work in IT and Telecoms, with those who work in finance-based professions the second most prolific property investors, with a fifth (19%) from this sector confirming they invest in property.
At the other end of the scale, those least likely to invest in property were revealed as those working in Arts and Culture, with just under 3% of all property investors hailing from this sector. In fact, property investment as a proportion amongst all investors from an Arts and Culture background was lower overall, with less than one in four choosing property, compared to more than half of investors from all other sectors.
It’s no surprise that financiers are one of the more likely professions to invest in property, perhaps being perceived as experts in this field and growing wealth through a portfolio of different types of investment. However, what is it that those in the technology industry – the fastest growing industry, known for disrupting many other industries – see in old fashioned bricks and mortar as a good investment?
Is it a coincidence that these interesting statistics come at the same time it is revealed that the UK’s tech industry has secured record levels of foreign investment – overtaking the US for the amount of investment per capita – and UK PropTech has finally begun to gain ground?
Andy Foote, director at SevenCapital comments: “The easy correlation would be that property, requiring a higher initial investment but that over the long-term has the potential to deliver the highest, stable yield, may be more quickly accessible to the industries that are doing well financially. However, maybe there’s a closer correlation between fast growing, disrupter industries identifying with the need for a tried and tested foundation, recognising the importance and somewhat solidity of a traditionally and arguable more stable investment.
“On the other hand, given the tech industry’s natural stance as a leader of innovation, certainly in recent years proving the power technology offers to move and improve other industries, are those in this industry ahead of the game with future trends? Whilst we’ve seen increased nervousness around property investment over recent years due to various tax changes and, for some cases, the uncertainty of Brexit, could it be that those working on transforming the industry through tech advancements have more confidence in how the market will perform in the future? It’s certainly an interesting concept.”
IT and Telecoms and Finance industries were also the most confident about property investment in the future.
The survey was carried out amongst 450 HNWIs – defined as earning above £100,000 per year, across the UK, Hong Kong, UAE and South Africa.
For more information on SevenCapital visit www.sevencapital.com.