These skyscrapers are used as a means of saving

In recent years, more and more narrow and tall skyscrapers have been built in New York. The exclusive apartments in these residential towers cost tens of millions of dollars, but are barely inhabited. The super-rich from all over the world buy a place in these exclusive residential towers, while hardly using them themselves. Why are they buying these very expensive apartments?

This video explains that the luxury residential towers have become an asset class in their own right. The luxury apartments do not primarily fulfil a residential function, but the function of an alternative means of savings. Billionaires who want to convert their money into tangible goods do not buy these apartments to live in, but to store part of their wealth. Compare it to the purchase of a Picasso or any other valuable art object.

This video shows that real estate can also play the role of savings and that project developers are now even building these tall skyscrapers especially for that purpose. Whether that is a desirable development remains to be seen. The primary necessity of living is becoming more and more expensive as a result of this trend. For more and more people, living in the city is becoming unaffordable.

Click on the image below or on this link to watch the video.

This contribution comes from Geotrendlines