It is one of the giant global industries, right up there with food and healthcare; it provides the collateral for a high proportion of loans in the world banking system and for growing volumes of securities, but it remains obstinately driven by local factors of supply and demand.
Real estate presents a conundrum. For the world’s largest investors it has many of the characteristics of an institutional global asset class to which they should consider allocating a significant portion of their funds to achieve diversification relative to bonds and equities, a hedge against inflation and potentially attractive returns.
Securitization of real estate equity as well as debt has made this easier than ever to implement. As Reits spread around the world, global investors will be able to buy and sell exposure to...
