real estate as an investment

22.11.2022

real estate as an investment
Real estate has a proven track record in the current market environment. But they have also already performed robustly and attractively compared to other investment categories over the past ten years. However, it should be mentioned from the outset that good diversification should be aimed for, both in direct and indirect real estate investments.

Real estate is characterised by its low correlation with other asset classes such as equities or bonds and thus contributes to an improved risk/return profile of portfolios. In the long term, real estate investments can offer an intermediate total return between equities and bonds.

In the current situation, commercial real estate has a major advantage: as rental income from commercial real estate is often linked to inflation, rising capital costs result in fewer losses. This makes it possible to protect oneself against fluctuations in the equity and cryptocurrency markets.

Source
Handelszeitung - Article

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