Taking aim: An assessment of the current global real estate investment environment
A solid real estate investment strategy uses top-down analysis to identify the location and timing of new investments. Determining what countries to target is the first challenge, as country-level factors are a primary driver of financial performance for real estate investments. These factors include macroeconomic and demographic conditions, as well as the local property market cycle and its drivers.
The country-level characteristics that make real estate investing attractive include:
• Solid rule of law
• Low sovereign risk
• High market transparency
• Ample liquidity
The countries that currently make the cut have the vast bulk of institutional-quality commercial property and substantial non-local purchase activity.
Countries that do not make the cut may still offer opportunities for real estate investors, but they require alternate approaches to mitigate the additional risk. In som