July 28, 2015

Trends in International Real Estate Investment

Posted in Uncategorized tagged , , , at 11:44 am by Keith Knutsson

As per Mr. Keith Knutsson International Real Estate Investment is on the upsurge and one striking reason for this is increase in the number of active international players in this sector and their appetite to invest out of their home country. Traditionally dominated by North American and European participants, this sector now has healthy competition from South American including Brazil and Argentina. Equally, there has been a substantial increase of foreign investment by China, India and the Gulf. According to PWC, the private real estate companies from these countries are seen keen to invest in prime locations across Europe.

Private equity in this sector is an issue of debate as per the Director of Integrale Advisors Mr. Keith Knutsson. He mentioned that 4 major trends in private equity in cross border investments:

  1. First Mover Advantage-When governments become open to outside investment frequently it is a foreign player that moves first in the market place. The “foreign” first mover oftentimes stimulates local investors to tag along. This has occurred substantially in China over the last decade.
  1. Rise of Partnerships and a Mix of Private and Government sponcered investment- India and several Gulf nations governments mandate partnerships with local players for foreign players to do any kind on investment. This proves to be oftentimes to be a challenge as ideological differences and conflict of interests occur with international and local players.
  1. Different Economic Cycles and Environmental Issues-: These two factors can pose serious questions as to investment hold times and ultimately investment returns. Increased environmental controls have increased significantly and need to be taken into account.

Return on Investment (ROI): Local country economy’s now impact pan European investments as seen in the recent Greek crisis. Mr. Keith Knutsson also mentioned the uncertainties in economic conditions leads to ROI concern.

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