Billionaires are expanding their influence in the commercial real estate sector as traditional institutional investors pull back due to elevated interest rates. Amancio Ortega, who established Zara and holds a controlling stake in Inditex, is at the forefront of this movement.
Reports indicate that Ortega allocated more than $1.5 billion in 2025 to purchase at least 10 properties in North America and Europe. Through his family investment firm, Pontegadea, he has targeted high-quality assets that produce reliable revenue. A notable transaction involved acquiring an office building in Vancouver rented to Amazon for approximately $780 million.
This pattern is not limited to Ortega. According to industry data, private buyers invested $464 billion in commercial properties in 2025, exceeding the $347 billion from institutional sources. This marks the fourth consecutive year of private investors outperforming institutions.
The change started after 2022, when increasing interest rates prompted institutions to reduce their involvement. In response, affluent individuals with ample cash reserves and extended investment horizons have stepped in to buy properties at lower prices.
Examples include Larry Ellison securing a discounted office space in London and Greg Flynn acquiring office buildings in San Francisco affected by reduced occupancy from the pandemic.
Preferred sectors for these investments include industrial facilities, office spaces, and residential rentals. Additionally, the rise of artificial intelligence has led to a 36% increase in funding for data centers, fostering a new group of investors in technology-related properties.
Real estate represents around 11% of portfolios held by the ultra-wealthy, appreciated for its consistent returns, safeguard against inflation, and potential for appreciation over time. Nevertheless, challenges persist. For instance, Naguib Sawiris lowered the asking price for a luxury apartment in London after it failed to sell, and Pontegadea accepted a significant loss on a property sale in Manhattan.
Ortega’s financial position remains robust, with estimates of €3.2 billion in dividends from Inditex this year supporting additional ventures.
