Publications

- May 1, 2016: Vol. 28, Number 5

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The global calculation: Why investors should consider expanding their real estate portfolios beyond U.S. borders

by Timothy Bellman

For many years, investor motivations for considering real estate have included its characteristic stable income, strong historical relative performance across multiple cycles, and potential diversification benefits when held with other asset classes in a portfolio.

Increasingly, investors around the globe are investing in nondomestic or even global real estate. Reasons include a lack of domestic real estate investment opportunity, potential diversification benefits and risk reduction, as well as potential return enhancement.

Around the world, real estate market fundamentals appear strong. In some ways, prices appear high on an absolute basis. But relative to other asset classes, such as long-term government bonds, real estate currently appears to be priced within or below normal ranges.

Going abroad can open up additional opportunities to access quality real estate investments. Invesco Real Estate estimates transparent real estate markets around the world total

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