As real estate continues to mature as an institutional investment class, an increasing number of investors are expanding the geographical scope of their portfolios.
The benefits of international diversification are numerous according to Chris Miers, senior research consultant on the real assets research team at NEPC, who recently participated in a video interview with IREI.
“By having a global investment portfolio, you are able to capture a larger universe, and that universe is growing faster,” he said.
Miers explained diversification can offer investors cyclicality, which can benefit from markets rising and falling into different magnitudes at different times. While this happens regularly, in the past this was particularly advantageous during the global financial crisis, when Asian markets fell after markets in the United States and Europe.
Building a global real estate portfolio also offers investors more opportunities for liquidity, according to Mi
