«Unthinkable prices»: the value of real estate of the richest people exceeded $ 100 million

The number of billionaires in the world has been continuously growing for several years. This led to the fact that real estate of previously unthinkable prices appeared on the market — from $ 100 million.

At least 20 objects have already been sold for such money in the USA. One of the buyers was Facebook founder Mark Zuckerberg.

About 20 homes in the United States have been sold for amounts of $ 100 million or more since 2007, when objects of such value first appeared on sale, writes The Wall Street Journal.

Only in 2019, the richest buyers purchased four houses with a nine-digit price tag.

Two decades ago, such property prices were «almost unthinkable,» said WSJ.

Times have changed: $ 100 million deals «paint an eloquent portrait of wealthy people at the beginning of the 21st century — a time when huge wealth was concentrated in the hands of a few,» the newspaper writes.

 “This led to the emergence of a small group of startlingly wealthy people willing to pay unprecedented amounts for homes that they like,” the article says.

At least five buyers of super-expensive real estate, says WSJ, have created their fortune on technology. Including Facebook founder Mark Zuckerberg, who, according to informed sources, gave about $ 130 million for about 700 acres in Hawaii to build a house for his family. About seven more houses were bought by wealthy financiers.

At the same time, some buyers of one house for $ 100 million were not enough, writes WSJ. Citadel hedge fund founder billionaire Ken Griffin paid just under $ 130 million for an oceanfront plot in Palm Beach, Florida in 2012. There he is going to build two houses — for himself and his mother, said one of the sources. And at the beginning of the year, he spent another $ 238 million on a new penthouse in Manhattan overlooking Central Park. Developer Stanley Kroenke, who bought a stake in Arsenal football club from billionaire Alisher Usmanov F 9, bought a ranch in Montana for about $ 100 million in 2012, and bought another in 2014 for more than $ 500 million in Texas, sources said. familiar with the terms of the transaction.

WSJ turned to the businessmen mentioned in the article for comments, but they either did not respond to the request or refused to respond.

 

According to real estate appraiser from New York Jonathan Miller, every appearance on the real estate market worth more than $ 100 million generates followers who also set nine-digit price tags on their properties — regardless of whether they are worth it or not. Such sellers rarely succeed, it follows from WSJ calculations: since the mid-2000s, about 70 objects with an initial price of more than $ 100 million were put up for sale (only 20 were sold). “This is not such a big market as everyone suggests,” Miller notes.

 

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According to Forbes, until this year, the number of billionaires in the world has been continuously growing for three years. In 2016, Forbes counted 1810 dollar billionaires in the world, in the next — 2043, in 2018 — 2208. In 2019, 247 people ceased to be billionaires — this is the largest drop in the number of billionaires in the Forbes rating since the crisis of 2009. Most billionaires, according to Forbes, live in New York. In second place is Hong Kong, in third is Moscow.

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