Emerging markets are risky, yet opportunities exist for commercial real estate investmentReal estate investing in emerging markets carries risk, but investors can pursue two avenues: direct stock investment through public securities and indirect investment through venture capital and private equity, says Marc Halle, managing director for Prudential Real Estate Investors, who oversees a team managing retail and institutional global real estate securities portfolios.
Halle notes that opportunities exist for public real estate investors to participate in the emerging markets while limiting some of the inherent risks. "In countries like Brazil, public investors can buy quality retail shopping companies that offer income-producing portfolios," Halle says. "Brazil—the world’s sixth largest economy and fifth largest population—provides compelling opportunities to capitalize on the impressive growth of the emerging middle class population."
Halle adds that in Asia, investors may want to alleviate some investment risk by looking to real estate companies based in Hong Kong or Singapore that provide indirect exposure to real estate projects in China, India or Malaysia. And within the U.S. market, investing in established publicly traded real estate investment trusts with exposure to non-U.S. markets is another avenue investors may want to explore.
Want to speak with Marc? Email John Chartier.