Real estate has become an important component of investors'
portfolios.
Once considered a heritage asset or a simple building in
operation, "real estate assets" have since become an asset class in
their own right.
Real estate as investment product
Real estate has a number of features making this asset a real
investment product.
- The size of the markets is today global. We had the
opportunity to see the inter-relationships of this system with the crisis of
sup-premiums...
- Another element allowing real estate to position itself as
an investment product is the development of performance indices, allowing
investors to have tools for measurement, analysis and arbitrage.
These
references make it possible to position the different real estate products in
relation to each other in terms of performance and risks.
- In parallel, the real estate industry has become
considerably professionalized with the development of trades and networks
structuring for the industry.
Real estate investing has different forms of investment
The real estate asset class in practice covers 3 different
forms of investment: direct investment, investment via funds, or investment
through listed companies (real estate companies in France, REITS in the United States). If you are going to invest in real estate visit here to have some advice KPT Homes Tampa
Direct investment: these are buildings that are physically
owned, alone or in co-ownership.
Investment in unlisted real estate companies: SCI, SCPI,
OPCI, INREV type real estate funds.
Investment in listed property companies: SIIC in France,
REITS in the US...
Recent developments in the real estate investment market
show that the general movement has gone from direct to indirect in recent
years.
- Direct investment in real estate is specific given the
nature of the asset.
The products / goods are very heterogeneous with each other:
location, date of construction, technical quality ... Similarly, the unit size
of assets impacts investment decisions.
Indirect investment in real estate can take two forms:
- The first is that of funds, unlisted
investment vehicles with open or closed capital, with a generally finished
investment horizon. The units of these funds are held by institutional
investors or individuals
