Real estate investment has been a constant feature of the vast majority of investment portfolios and increasingly investors and fund managers have looked to the emerging markets such as the Middle East when placing capital. Real estate investments have traditionally formed a part of investors medium and long term strategies although in emerging markets in recent years, many real estate investments have also offered short term rewards in rapidly developing markets like Dubai and Abu Dhabi. As markets have developed, so have investment opportunities and real estate investment models.
Real estate investment can take many forms and there are a huge number of investment vehicles specifically designed for companies and individuals investing in real estate. Whilst it is still feasible to invest directly in property, acquiring individual units from developers or other individuals, there are a number of other options for real estate investors. Investment funds such are prevalent worldwide, allowing investors to spread their risk by placing capital with fund management companies who hold a wide variety of real estate in one or more regions. Real estate investment trusts or REITs are another example of investment funds which allows investors to reduce or eliminate corporate taxes whilst 90% of income must be distributed amongst investors.
Investment funds are now making their mark in emerging markets such as the Middle East in addition to their continued use across more developed real estate markets. These investment vehicles enable investors to spread their risk when entering emerging markets whilst continuing to garner significant returns on investment. Financial markets in the Middle East are continuing to develop rapidly and increasingly investors in real estate are looking to structured vehicles when placing their capital investments.
Whilst investment in real estate in emerging markets has offered exceptional returns on investment in some cases, particularly in cities such as Dubai and Abu Dhabi, investors have continued to mitigate their risk by investing in more developed regions such as the United States and Europe. The key to a successful investment strategy for the majority of investors has been to spread their investment across multiple regions and asset classes. It is imperative for real estate investors to investigate each investment opportunity on merit and place