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pension funds. At present, as per the estimation the real estate has yield
around 9.7% when compared with previous years where it was around 9.0%.
Comparison has also been done by investors on fixed income yields that
measures relative values. To be more specific, institutional investors should
invest their funds on long-term liabilities which in turn results in more income
to the company.
The opportunity set is large and expanding
It is also encouraging to see that the global opportunity set continues to
increase.
The opportunity in the global level is increasing day by day. The most
important criteria that should be considered is identifying the appropriate
opportunity to invest on assets. It is the view of sophisticated investors that
real estate is a better source for their income, growing their capital and
diversification in their portfolio. Both transparency and liquidity that is
followed in the public marketplace has improvised the investment on real
estate. Expansion of both REITs and public real estate to the global level is
considered to be the most vital state in the market evolution. The investment
on real estate is considered to be better investment for institutional
investors.
The below table reflects the estimated composition of real estate globally,
based on EPRA data. EPRA estimate the total real-estate market (including
China, yet excluding all other emerging markets) at US$15.6trl. Of this figure,
listed real estate only represents US$1.1trl, or 7.3% of the total.
Conclusions