Due to the low interest rate environment and the increasing volatility of financial markets, appetite for real estate and its capacity to deliver stable income flows is growing fast. In most markets, the usual practice has been to first invest in the domestic market and then consider cross-border opportunities. This does not imply that real estate investment has been exclusively domestic, but there has been a strong home bias for the majority of investors. Real estate markets can be quite different across the globe and subject to different risks and local practices. With investor expertise typically focused on domestic markets, this has created a deterrent to those wishing to invest in non-domestic markets (beyond simply currency risk and tax issues).
Source : UBS AG