Most institutional investors are familiar with the appeal of holding real estate. With a low correlation to other asset classes, it can serve as an instant diversifier. Historically, real estate has delivered strong relative performance across multiple cycles, and its characteristic stable income makes it a compelling alternative to traditional fixedincome instruments.
In the past, institutional investors around the world have been domestically focused, but many are now increasingly investing in non-domestic or even global real estate. This shift has been driven by potential diversification benefits and risk reduction, as well as possible return enhancement. In smaller markets, such as Canada, a lack of domestic investment opportunities has also played a role.
Source : Invesco Real Estate