Who are the global real estate investors, what are their strategies and strengths, and why?

Home >> Trending Insights >> Who are the global real estate investors, what are their strategies and strengths, and why?

Who are the global real estate investors, what are their strategies and strengths, and why?

Real Estate Investment Strategies and Impact On Other Asset Classes

According to a report by Morgan Stanley Capital International, the global Real Estate investment market was worth $9.6 trillion in 2019.

A look at the average monthly rents worldwide for 2020 shows a glimpse of why investors choose Real Estate for its ability to produce rental income.

Average monthly residential rent in selected markets worldwide, 2020.

“It’s tangible; it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” -Donald Trump

Real Estate is considered to be one of the safest investment classes. Stability, growth,and its ability to produce income are among the main reasons that investors include Residential and Commercial Property in their long term portfolios.

Who Are the Global Real Estate Investors?

For clarity, its important to know the key players in the Real Estate sector.

Largest Real Estate REITs and Companies by Total Assets

According to the Sovereign Wealth Fund Institute, the total assets for the top 3 largest Real Estate Investment Trusts (REITs) are –

  1. Resource Real Estate Opportunity REIT Inc – $1,139.8 billion
  2. Annaly Capital Management – $96.9 billion
  3. Medalist Diversified REIT – $82.8 billion

Another way that investors cancan magnify their gains is by investing in companies that manage property assets. By doing so, investors can gain leverage and exposure to superior offers and deals.

According to Forbes, the top 3 largest Real Estate companies are –

  1. Brookfield Asset Management – $323.9 billion
  2. American Tower Corporation – $40.7 billion
  3. Prologis – $55.007 billion

The Real Estate market is a fast-paced and competitive investment sector with many ways to profit. Investors use different methods and strategies to achieve the maximum yield from their seed investment.

Strategies That Real Estate Investors Use

To maximise profit from the property market, key strategies help investors get the most return on investment. Here are some of the proven ways to profit from the housing and commercial property market –

Investing in REITs (Real Estate Investment Trusts)

This option is perfect for investors looking to profit from the Real Estate market without actually buying physical property.

REITs pay dividends and appreciate over time. here have been periods in time when REITs have significantly outperformed stock market indices.

Not only this, but REITs are easier to buy and sell with fewer transaction costs and legal procedures. This makes them more liquid than traditional brick-and-mortar property investments.

Property Flipping

Flipping property is purchasing property to renovate and add value to it by improving its overall structural integrity, repainting, landscaping, and remodelling.

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!” -John Jacob Astor

Once a house has been renovated and refurbished, it is worth a higher price on the property market.

The investor then sells the property and keeps the profit earned from the value-added. The market benefits because the quality and standard of the property have improved. These factors make the flipping of property a great overall strategy for adding value to the Real Estate space.

long term Hold

The simplest strategy that Real Estate investors use to profit off the increase in its valuation is buying and holding it for a long term period. Due to factors like inflation and increased demand, the value of a property has shown a steep uptrend in recent history.

The buy-and-hold strategy requires patience and the viability of capital to remain committed for extended periods.

While the appreciation of value in Real Estate does take longer tenures, it is the stability, and comparative safety of the asset class is what makes this strategy viable.

“Owning a home is a keystone of wealth…both financial affluence and emotional security.” -Suze Orman

Leasing or Renting (Sublet)

A benefit of Real Estate is its ability to generate regular income.

The property investor may choose to either sublet their property to another party to earn monthly income or give out the property on lease.

Rental income is a major attraction to purchasing Real Estate is that it can generate reliable, regular income. It has proven itself as an asset that can hold value well over-time and stay fairly resistant to extreme market volatility.

Resources Required to Succeed with These Strategies

For those looking to establish themselves in Real Estate, some strategies must be put in place to maximum gain and get the most out of one’s investment.

Large Capital

Land is in high demand because every human needs a place to stay and live. Due to the high demand for land, the prices per square foot have steadily increased in recent history.

To finance Real Estate investments, a good credit score is essential to obtaining a low interest loan from a bank or financial institution.

Government Registration and Transaction Costs

While investing in property, there are certain legal obligations like registration and taxes to be paid. There are also certain limitations to investing in Real Estate.

For example, the transaction costs are often higher, with more legal procedures than other asset classes. In India, the registration of the property is regulated by the Real Estate Regulatory Authority (RERA).

Impact on the Investment Space as Compared to Other Asset Classes

Real Estate is relatively more consistent than other asset classes for building wealth.

Research also shows that investing in property is comparatively safer and performs better over-time as a hedge against inflation.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt

While many stocks do pay dividends, rental income is often significantly greater and more frequent.

The limitation of Real Estate is that it is less liquid, less transparent, and has higher transaction costs when compared to equity securities traded on public Exchanges.

Retail and Institutional Investors Moving Into Real Estate

According to a press-release by Grand View Research, the size of the Real Estate market is projected to reach $4,263.7 billion by 2025. This indicates that investors are still positive about future market performance and the potential for continued growth in the Real Estate market.

According to the United Nations, the world’s population is expected to increase by 2 billion persons in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050.

While some individuals claim the property sector is in a bubble, statistical indicators show that demand continues to rise while the availability of land only becomes more scarce with a rising population. This formula adds up to continued rising prices in the Real Estate market for the foreseeable future.

“The major fortunes in America have been made in land.” -John D. Rockefeller

Real Estate has constantly performed well in times of recession and economic crisis. Since housing is a basic need, investors tend to hold even during market volatility. Reports show that amid the persisting COVID-19 pandemic, growth has slowed while some regions are showing signs of contraction.

However, the recovery has been rapid and promising for more upside.

During periods of crisis, risk-averse investors tend to pull out of higher-risk investments and move into safe-havens. Real Estate has proven itself consistently over time to be a safe haven asset. Regardless of economic status, families need a place to live.

Property fulfils the basic needs for a human being – shelter and safety. Businesses rely on commercial spaces to conduct their businesses. For these reasons, investors will always have an interest in personal and commercial housing due to continued rising demand.


Real Estate is one of the most lucrative investment opportunities, but it is not a get-rich-quick scheme. Rather, the largest and best investors in this space use specific investment strategies that provide consistent results over the long term.

Strategies like buy-and-hold, investing in REITs, and property flipping mean that there are plenty of opportunities for investments in the space. While Real Estate does have its own sets of regulations and limitations, clearly this sector also has bright prospects for extended growth in the future.


Real Estate Investment in Low Interest Rate Environment

Home >> Trending Insights >> Real Estate Investment in Low Interest Rate Environment

Real Estate Investment in Low Interest Rate Environment

What Do Low Interest Rates Mean for Real Estate Investment and REITs?

According to Real Estate as an Investment Alternative in an Environment with low interest Rates and Inflation, low interest rates make it possible for investors to borrow more money at a lower cost and thereby be able to invest more. This leads to growth in the Real Estate sector because of increased demand over the current supply.

Real Estate has evolved into an essential asset class to investors around the world. According to the report Indian Real Estate Industry, the sector in India is expected to reach a market size of $1 trillion by 2030 from $120 billion in 2017 and contribute 13% to the country’s GDP by 2025.

At the same time, the effects of lowered interest rates on REITs (Real Estate Investment Trust) is not a constantly correlated relationship.

According to a study by REIT, we can see that through most of 2006, the correlation was positive, meaning higher interest rates result in increased value for REITS, however, from 2004 to 2006, this relationship was negatively correlated.

How Do Interest Rates Affect Property Values and REITS Returns?

The Impact of Rising Interest Rates on REITS the effects of rising interest rates do not lead to poor returns. Lower interest rate decreases REIT borrowing costs, which could prove to impact buying opportunity in the long-run. Without a doubt, rising interests pose challenges to REITs.

While there are many other factors at play, interest rate changes do not appear to be the most important dictating factor to performance over the medium and long term. In the end, mortgage rates are directly responsible for an effect on home prices, along with interest rates as they also have a strong effect on them.

Effects of a low interest Rate Environment on These Values and Returns

As discussed below, it’s clear that low interest rates are a trade-off when it comes to Real Estate and REIT investment.

Advantages and Effects

The advantages of a prevailing low interest rate are –

  • Improved buyer interest
  • Increased market opportunity
  • Overall cheaper to invest
  • Fixed-rate mortgages are considerable
  • Reduced REIT borrowing cost

Investors can benefit from a low interest rate environment by being ready to take advantage of buying opportunities. It offers real estate investors an opportunity to stress test for higher interest rates and reconsider making changes in their financing choices.

Disadvantages and Consequences

The low interest Rate Environment Causes, Effects, A Way Out outlines the current declining trends in the interest rates around the world. Falling interest rates may sound appealing because of cheaper money, but this can have several disadvantages as well.

The disadvantages of a prevailing low interest rate are –

  • Chances of excessive demand
  • Higher chances of overleveraging
  • Create conditions for added inflation
  • Lowered interest income for banks
  • Bank deposits (savings) reduce

While cheaper money may sound like a great idea, it adds to further inflation in the economy which can lead to an unprecedented increase in demand for Real Estate and REITs. Over time, this can result in overvaluation and difficulty for new players to invest in the space due to the high-cost barrier to entry.

Historical Trends and Their Impacts on These Values and Returns

Lowered interest rates lead to better buyer interest and more competition in the Real Estate sector. While the mortgage rate and inflation are important influencers of valuation and returns, the interest rate is a key factor that has to be considered simultaneously.

ResearchGate shows that interest rates around the world have been steadily decreasing, resulting in more affordable mortgages due to the reduced cost of cash in the market. However, it’s important to consider the inflation that also takes place during this period and the long term effects it has on the economy.

To better understand how REITs perform in low interest-rate environments, it’s curtail to know how they fare during rising interest rates.

This graph by REIT illustrates how rises in interest rates are caused by positive underlying economic growth and REITS have been seen to perform well during these times.

Forecast for the Future Interest Rate Environment

In certain situations like economic downturn and the likes of the current COVID-19 pandemic, investors continue to see why a solid investment in a real asset that can generate income is one of the best investments out there.

As compared to stocks, real estate and REITs offer investors relatively

The Indian Real Estate market is set to continue growing in the face of adversity as the demand for real estate shows no sign of slowing down.

Regions to Benefit the Most

Discuss the regions that stand to benefit the most. (100 words)

The regions that benefit the most are

  • Switzerland
  • Denmark
  • Japan

The above regions currently exist in a negative interest rate environment, meaning that investors are greatly incentivized to purchase Real Estate and REITs at barely any cost. While this does lead to added demand and inflation, these regions have greatly benefitted from having low interest rates for extended periods with market growth and a positive rate of Return On Investment (ROI).

Most Vulnerable Regions

According to the Research Department at the International Monetary Fund, the biggest challenge that developing countries face is the scarcity of capital for the development required to achieve and a high-rate of growth of national income.

The regions that struggle in times of low interest rates are developing countries. The reason for this is that lower interest rates contribute to higher debt and more easily available credit. In developing countries, due to increased economic uncertainty, this can lead to many great issues. Complications like poverty, cost of living, and similar metrics can mean that lowered interest rates can negatively affect regions such as –

  • Bangladesh
  • Nigeria
  • Ghana
  • Nepal

In countries where inflation has already negatively impacted the country’s economy, lowered interest rates can cause more harm than good, depending on how judiciously the investors choose to utilize the resources.


Real Estate and REITs are a great investment for those looking to move into a relatively more stable and long term addition to their portfolios. In low interest rate environments, banks provide mortgages at reduced rates meaning it’s comparatively inexpensive to invest.

Lowered interest rates also mean that it’s less expensive to invest in a REIT as opposed to times when the interest rate is higher.

As demonstrated above, rising interest rates have not shown to cause a significant reduction in REIT performance. However, rising interest rates are a cause mortgage demand to reduce, meaning it’s more expensive to invest in Real Estate and REITs.


Real Estate Investment (Introduction)

Home >> Trending Insights >> Real Estate Investment (Introduction)

Real Estate Investment (Introduction)

Introduction to Real Estate Investment

Real Estate investment is the purchase of property to generate income and value. It is important to understand the methods, benefits, regulations, and limitations of investing in Real Estate and REITs (Real Estate Investment Trusts).

Different Methods of Real Estate Investment

There are multiple ways that individuals and businesses can invest and profit in real estate, namely –

Owning Land (Becoming A Landlord)

Buying a plot of land or property is one of the most straightforward and common ways to become a landlord and invest in Real Estate today.

“Landlords grow rich in their sleep.” – John Stuart Mill

It provides you with possession of the title deed and all rights associated with the land or property.

Flipping Properties/Renovation for Sale

A common strategy in the field of Real Estate is flipping properties, i.e., buying commercial or domestic housing at rates that are undervalued, performing the required renovations and improvements to sell at a higher price.

The investor creates value by painting the property, adding features and amenities, and overall improving the state of the Real Estate as compared to how it was purchased.

Sources have shown that renovating and flipping Real Estate earns investors an average gross profit of 36.7% on their investment.

Investing in REITs (Real Estate Investment Trusts)

REITs are a great way for one to gain exposure to volatility and upward momentum in the value of the Real Estate market, without actually having to purchase any land or buy a house.

Instead, individuals and businesses can invest in REITs that allow investment appreciation and dividends in accordance with the housing and property market. An added benefit of REITs is that they are much more liquid than traditional brick-and-mortar Real Estate.

What Makes Real Estate A Lucrative Space for Investing?

Real Estate has performed consistently over time to provide reliable gains with moderate volatility.

While it does have a historical reputation of comparatively slower returns, Real Estate is a lucrative space for investors because it offers unmatched security in the fact that property is a real, tangible asset that can generate income while steadily appreciating in value.

“Ninety percent of all millionaires become so through owning real estate.” – Andrew Carnegie

Regulations and Limitations in Real Estate

While the issue of being matched with a buyer or seller is mostly mitigated in today’s digital world, the regulatory limitations still exist. In India, Real Estate is regulated by The Real Estate (Regulation and Development) Act, 2016.

Due to safety reasons, many countries have strict requirements for their citizens’ abilities to own property.

In addition, when it comes to investing in Real Estate, there are certain limitations to be aware of –

Less Liquid Than Stocks & Other Asset Classes

Housing and Commercial property are less liquid than other asset classes like stock and precious metals. This means that it is more complex to buy and sell because of legal and regulatory requirements.

Benefits of Investing in Real Estate

There are several benefits to investing in Real Estate –

Ability to Produce Rental Income

One of the most compelling reasons to invest in Real Estate is its potential to produce rental income.

Once a property is purchased, it can be rented or leased to house a third-party or provide commercial space for a business.

Considered a Safe Haven Asset

Real Estate can be viewed as a safe haven as compared to the volatility of stocks. The reason for this is because the housing market and REITs, as a whole, are less volatile than the stock market.

“The best investment on Earth is earth.” – Louis Glickman

Property Can be Used as Collateral

Real Estate can be used as collateral to obtain credit against the value of the property from banks and financial institutions.

Correlation Between Real Estate and Other Asset Classes

Research shows that while REITs and the stock market currently share a positive correlation, it varies wildly between a coefficient of 0 (no correlation) and 0.90, or a nearly perfect positive correlation, over time.

Overall, Real Estate and REITs are considered less volatile, reduced-risk investments because of their ability to hold value and their proven track record for stability.

Effect of Economic Downturn or Uncertainty on Real Estate

Real Estate is perceived as a safe haven asset in times of economic downturn. The graph above, depicts that while the market experiences periods of contraction, Real Estate sales are affected, however historically they have recovered rapidly.

Traditionally, in periods of uncertainty and recession, investors turn to real estate to provide them with the safety net of stability and reliability.

Benefits of Having Real Estate in Your Portfolio
  • The Real Estate market has seen significant growth historically year-on-year.
  • Residential and Commercial Real Estate can produce rental income regardless of market recessions.
  • Less-than-perfect correlation with traditional asset classes, thus providing diversification benefits.

Characteristics That Make a Company an Ideal Real Estate Investment

When looking for a company to invest in, there are a few key things to look out for, namely –

  • Proven track record.
  • Potential to produce income.
  • Estimation of value appreciation.

Once you have a good idea of a company’s past performance, it is easier to visualize the profit potential that your investment in the target company can create.

“Buy land, they aren’t making anymore of it.” – Mark Twain

Also, it is essential to take note of any government regulations that may apply to your investment and adhere to them.

When investing, the key is to be able to access as much information as to help you make an informed decision.


Housing and Commercial Real Estate are great investments known for their long term stability and significant profit potential.

We have seen how well Real Estate holds up during periods of market recessions, and that it is definitely worth investing in Real Estate for the long term.

REITs offer unmatched security because it gives exposure to capital appreciation in the value of Real Estate assets without needing to physically own the property. This helps investors avoid liquidity and capital issues while investing in the property market.

Subscribe Our Newsletter


Real Estate Investment (Introduction)

Real Estate investment is the purchase of property to generate income and value

Real Estate Investment in Low Interest Rate Environment

Real Estate has evolved into an essential asset class to investors around the world.

Who are the global real estate investors, what are their strategies and strengths, and why?

A look at the average monthly rents worldwide for 2020 shows a glimpse of why investors choose Real Estate for its ability to produce rental income.

Subscribe Our Newsletter