Considerations for investing in global real estate

Global real estate is slated to grow in importance in portfolio allocations moving forward. What should investors look out for?

Sep 17, 2018 | Invesco Real Estate

Many investors are familiar with the appeal of holding real estate. With a generally low correlation to other asset classes, it can serve as an instant diversifier in a mixed-asset portfolio. Historically, real estate has delivered strong relative performance across multiple cycles compared to other asset classes, and its characteristic stable income, underpinned by long-term leases, makes it a compelling alternative to traditional fixed-income instruments.

In the past, real estate investors around the world have tended to be domestically focused, but increasingly many are now investing in non-domestic or even global real estate. Large institutional investors and Sovereign Wealth Funds have been at the forefront of the shift. A lack of domestic investment opportunities has also played a role in investors’ increasing appetite for an international portfolio as a way to significantly broaden their opportunity set.

Assessing the global real estate market and the different means of gaining exposure through listed, unlisted, equity and debt vehicles can be a daunting task. Investors must assess various factors before making an allocation, including the impact of currency fluctuations and foreign tax laws. They must also assess their own internal capabilities for evaluating such an allocation.

In this whitepaper, the Invesco Real Estate team lists out the considerations investors should have when looking to invest in real estate globally.

Click on “Download PDF” to find out more.

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