22. March 2021

THE BENEFITS OF GLOBAL DIVERSIFICATION IN REAL ESTATE FOR INSTITUTIONAL INVESTORS

 

By diversifying not only across real estate sectors but also geographies, real estate investors can benefit from poor correlation among markets and reduce risk on a portfolio level. This paper briefly introduces the global institutional real estate universe, touching on various market characteristics such as size, transparency, liquidity and dynamics, followed by an illustration of the correlation among real estate markets. Secondly, this paper presents a step-by-step guideline for constructing an international real estate portfolio. By doing so, it touches on the key points that have to be considered when investing in global real estate.

Download Whitepaper (English) - Download Whitepaper (German)