Globalisation of Real Estate Investments

Running Head : Globalisation of Real Estate Investments

Globalisation of Real Estate Investments

[Name of the writer]

[Name of the institution]

Introduction

Property investment has definitely emerged as a global opportunity for investors worldwide . A large number of investors are buying real estate assets in foreign countries . Institutional and private investors have found this as a lucrative opportunity to increase their earnings with minimum risks . Especially in the last decade , global real estate investment has developed into a lucrative for small as well as large scale investors . Technological innovations and

development of the telecommunications sector has also played an extremely vital role in the enhancement of the global real estate industry . Thanks to these advancements in science and technology , global real estate operations have become cost effective and time saving . Access to global information has become easy and fast for investors even in the remote areas

Introduction of new legislations regarding the structure and operations of REITs and other REIT-like vehicles have been adopted by various countries . The United Kingdom has also implemented the new legislation regarding this matter from Jan 1 , 2007 . Various other nations are also taking steps in the right direction towards the globalization of the real estate market as the world has shrunk into a global village thanks to this era of telecommunication

In this , we will first discuss the reasons for the recent boost in the global real estate business in the last decade . Afterwards , we will move on to the future of the real estate industry especially the factors which are more likely to influence the property sector in the near future . Then , we will move on to the benefits of shifting this business towards a global operational scale . Moreover , we will also cover the issue of considering international property as a globally traded asset and the risks associated with this business . In the end , we will discuss the basic structure of Real Estate Investment Trusts (REITs ) with a focus on the REITs in the United Kingdom

Global Real Estate Investment going Mainstream

Real estate investment is emerging as a brilliant opportunity for investors worldwide . In USA , there has been a significant increase in the number of pension funds and gratuities which have been allocated for this purpose

Retirement plans are taking a new shift towards investment in the real estate sector since it usually guarantees a stable and secure source of income . The investments that come into the United States from other countries are now more inclined towards the real estate business . A significant point to note here is that most of these investments seem to be for long-term purposes since a large number of them come from pension funds of other developed countries . The United States is not the only country that is enjoying this trend . Other countries too are experiencing the benefits of this new shift in the international business market . In a worldwide survey carried out in December 2003 , 70 people said that organizational investors should apportion at least 11...