Investors can avoid some of the pitfalls of real estate investment “herd mentality” by adopting a more disciplined approach to asset sales, carrying out deeper market analysis and creating environments where individuals can take contrarian views and not be afraid of potentially making mistakes.
That was the message delivered by the panel on a webinar held on 29 April by The Property Chronicle, which examined the risks of following the herd in real estate.
The panel, moderated by José Pellicer, a partner at Evonite, also discussed where current herd mentality may lead to mistakes and drew on some examples from the past to warn investors of the dangers of employing strategies that are heavily based on large-scale consensus.
Speaking about how institutions can act on more independent views when allocating capital, Ben Sanderson, managing director at Sentinel Real Estate, said leaders needed to train a certain mindset within their teams: “You need to
