REAL ESTATE – The real estate market is "ripe" for a more global investment approach, says Schroders’ investment chief Alan Brown.
"We have indeed seen a global property boom that has spread to many parts of the world," Brown said on an online forum organised by the Financial Times today.
In response to a question, he said he didn’t necessarily see hedge funds capitalising on rising property prices.
But he said: "However, we do believe that the property market is ripe for a more global investment approach. Historically, the majority of property investment has been carried out on a local basis.
"Increasingly, we now see investors interested in more geographically diversified strategies thereby seeking to avoid potential local hot spots. Another catalyst has been the growing number of REIT type structures available around the world.
"Quite clearly developing economies should be a part of this. Emerging market investment started with equities, moved on to bonds and we see no reason why it should not embrace property as well."
There was one caveat – which was that the expansion into developing countries was likely to occur "one country at a time".
Brown said: "There are minimum standards of law of property and transparency that will be necessary to attract foreign investors. Some countries are already clearly there, others have a way to go."
