Real Estate markets are driven by supply and demand just like other sectors. However, relative to other international business sectors, real estate offers a much lower intrasector correlation within the countries it is represented in globally. Cyclical movements in real estate are often driven to a larger degree by local supply parameters rather than the economically influenced demand side. These diversification benefits that real estate investments offer provide the investor with the opportunity to achieve an optimized risk/return profile.
Indirect real estate investments enable investors to achieve a well diversified strategy quickly with a considerably smaller investment size than is possible with direct real estate. Furthermore, access to professional management teams with existing track record’s outside the home country of an investor, is especially advantageous.
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- Direct acquisition of properties
- Joint ventures
- Funds
- Listed real estate companies
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