Distinct players: Both public and private routes have their places in real estate investment
Increasing efforts to implement real estate investment trust regimes across Europe, coupled with rising deal values in the direct real estate sector, have raised questions about the role of REITs in broader portfolios. With these listed property vehicles offering liquidity and cheaper access to some of the best assets on the market, should investors allocate even more capital to REITs?
The global REIT market has grown enormously in recent years — a recent report from EY said that, as of September 2016, its market capitalisation stood at about $1.7 trillion (€1.6 trillion), up from $734 billion (€675 billion) in 2010.
The rise follows a significant increase in the number of national REIT regimes launched in the past decade — according to EY, 16 jurisdictions have implemented REIT or REIT-like frameworks since 2006. In Europe, these include Germany, Italy and the United Kingdom, all in 2007. Since then, according to the British Property Federation, more than 80 per