Real estate, what it is?
Investment real estate can provide opportunities for financial gains to investors. Owning investment properties can help build wealth, increase income, and help diversify an investment portfolio. Although there are many types of properties in the real estate market, primarily, most properties can be broken down into two classifications.
Residential
Investment real estate can include residential land and properties. Residential investments typically involve homes, townhouses, and condominiums. Residential properties can be multi-family or single-family units.
Commercial
An investment in commercial real estate might involve the ownership of retail stores, office buildings, or storage facilities and warehouses. Investment in commercial real estate is typically more involved and costly than residential investments. Commercial property leases can be longer than a residential rental agreement. Both the costs and profitability are usually measured on a per-square-foot basis.
Real estate supports people, business and communities and requires resources and energy to function. Therefore, understanding potential contributions as well as the negative impact should be an inherent element. Opportunities for recognising and delivering impact within real estate are significant.
Funds targeting Real Estate tend to prefer investing in developed markets. There was a boom in 2019 and 2020 in the number of funds launched targeting Real Estate. This may be linked to the historically low interest rates in many developing countries during those years. Capital commitments tend to focus on North American and European markets. Interestingly, within Real Estate there also seems to be prominence in evergreen fund structures.
