Latest Trends in Real Estate Private Equity

Real estate is usually subject to various opinions and prejudices. One being that the market is likely to enter another 8 year real estate cycle. The investments in the sector are ever increasing, but brokers and managers are still witnessing strong competition for deals and transactions. Real Estate Private Equity is an asset class consisting of equity and debt investing. The investing involves strategies for development and based on a pool of capital from investors. The factors that are affecting the real estate trends in real estate private equity are:

Stock Market Volatility
The past decade or so has unveiled a lot of hidden aspects of the stock markets. Volatility is an inevitable aspect of the markets. The financial crisis across the globe affected most buyers and sellers and their ability to spend. The Indian RealEstate witnessed a clear fall in sales after the meltdown.



Technology
Technology plays an important role in the operations of any sector. The introduction of IT and reporting systems for real estate have improved the efficiency of operations. Software and online platforms have revolutionised the asset classes into new areas.

Capital Revolution
Various investors throughout the world are still investing in real estate. Traditional investments modules are being substituted to avail better returns. Private equity in terms of real estate has also picked up. Fundraising in real estate private equity has seen a surge in the recent years.

Creating Tools
There is increased effort in enabling operations to cut down on costs. Shared service centers are being setup for back and middle official operations. Third party outsourcing has been identified as a sure shot way to appropriate transaction based activities.

Partnership Values
Mergers and joint ventures amongst companies and enterprises affect the trends of the real estate sector. The policies introduced or modified by the government determine the majority of the partnerships between firms and ultimately altering the way projects are executed.

Open-ended Funds
The global real estate markets have observed a steady increase in open ended real estate funds. The surge has largely helped the sector to increase its operations during slowdown.
Sustainability


Sustenance management is of much significance in a fluctuating market. Investors and businessman are shifting their faculties toward safe investments and environmental, social and governance matters. Risk management has caught the interest of investors for stable returns and ensuring longevity of the business.

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