There is a higher risk appetite, but younger investors also view their property investments in the wider context of portfolios, with decisions driven by liquidity and returns more than location or emotional attachment.

A full 70% of agent respondents to the report’s Attitudes Survey said yes when asked: “Do your younger clients, below forty, have different attitudes towards their property investments?”

More than half offered explanations as to why and an analysis of these show clear patterns across the globe – shifting preferences and a more international outlook.

The most cited attitude is that younger clients manage their real estate portfolios as market portfolios. They see real estate as an investment, not only a home, often with an emphasis on profitability over location.

They will look beyond traditional assets, across both residential and commercial and further afield, with a willingness to develop to add value.

Knight Frank Partner Edward de Mallet Morgan says many of the younger generation are happy to speculate and invest in other asset classes, particularly where it is a fun process and something they can share.

Victoria Garrett, Knight Frank’s head of residential in Asia Pacific, says this is especially the case among wealthy young Asians, who definitely have different attitudes.

“Property is still very much in the DNA of the younger generations, they may be shifting the type of assets they are looking at to suit their portfolio and how the investment case stacks up, but the appetite is clearly there.

“In Asia/Pacific there is a lot of accumulated wealth in previous generations because of property, and that desire to own property is entrenched in younger generations.

“Given the typical family demographic, this wealth is passed on to one or perhaps two children.”

Connectivity is key

However, de Mallet Morgan says what the next generation are looking for from a property is changing.

“Younger people tend to place a higher value on technology, health and fitness and increasingly on running costs and any renewable energy and carbon efficiencies.

“Connectivity is important, both digitally and physically.”

In addition, how they find these properties is evolving, he says.

“The younger generation is all about the experience, and because they are so busy and so connected all the time they make decisions faster, with much less prevarication.

“They are a generation that has an affinity with visually interesting and attractive content, so if properties are not suitably marketed, they may be missed by the younger generation, even if they might be suitable options.

“In a similar vein if something looks too expensive, many will simply discount it and not visit, because they don’t want to waste time.”

Garrett agrees and says the world is a smaller place due in part to physical connectivity and the availability of information.

Now anyone can go online, seek out content from trusted sources and explore the local area on Google Earth.

In the past year particularly, more and more people have become comfortable with virtual viewings. They can narrow their search before even visiting a place.

Looking beyond borders

The next generation being less tied to one place are more geographically diverse, looking outside their country of residence and at new locations abroad.

Part of this comes from the different experiences of younger wealthy people, who are increasingly educated overseas, gaining a global perspective very early on in their lives.

According to the survey, almost half of wealthy investor parents send their children overseas for university education, rising to 64% for Asians.

“Increasingly people are considering themselves as global citizens.

“Where previously we may have seen property being bought closer to home, or in well-established markets, the younger generation are looking further afield,” says Garrett.

Some of the survey respondents noted the next generation have a higher willingness to rent or are more comfortable investing in rental properties.

This seems to be nuanced geographically and may shift because of the pandemic.

From an Asia/Pacific perspective Garrett says home ownership is much higher on the agenda, and there is a willingness to own multiple homes and be landlords.