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 some countries, risk stems from t