Today’s investment environment is characterised by structurally higher inflation and real estate investment can be a first line of defence in preserving purchasing power. Markus Waeber, Head of Indirect Real Estate Advisory & Intelligence at Julius Baer Wealth Management Group, highlights six global market trends real estate investors need to consider to ride out the current cycle.
Investing in real estate against inflation
In the case of real estate, an asset whose value is hugely location-dependent, it is not always easy to draw generalised conclusions on a global scale since “real estate markets differ considerably from one region to another, and even within the same city or neighbourhood,” as Markus Waeber points out. He adds that “supply and demand can vary greatly from one economy to another. Factors such as legal differences, different tax regulations and restrictions on foreign investment must also be considered”.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.