Investment Performance Of Niche Property Investments

Again, it is hard to define the investment performance of the property sector as a whole within the context of this record, due to the wide variety of sub-sectors and areas which must be considered. In the USA for instance, residential real estate has delivered markedly distinct functionality for each Investor that has participated depending on their and residential property for a whole has given a different functionality to commercial property or a student lodging.

The exact same can be said for every mix of business, strategy, and area, and so the context of this document doesn't allow for a detailed analysis of the investment operation of the industry as a whole.

Residential – The real estate investment in New York provides some interesting opportunities, as gloomy prices combine with a lack of buyer financing to create a viable rental market that may deliver returns of between 4 percent and 8 percent after prices. In other more distressed markets, properties could be acquired with heavy discounts, and rental yields may achieve as large as 15% to 20 percent.

Commercial- Office space, shopping centers, and industrial space have been the focus of big Institutional Investors seeking steady income and long-term expansion prospects. In developed markets where infrastructure is well established, commercial property is regarded as a stable income investment with some growth potential.

In less developed markets possible for growth is greater but so is the degree of risk to capital in terms of location and counterparty risk. The investment performance of commercial property varies from region to region, and across the varying sub-sectors like office or industrial.