In light of the rapid transformations witnessed by global financial and real estate markets, indirect foreign investment instruments have increasingly gained attention from both individual and institutional investors. These instruments represent a modern and efficient means of participating in international real estate markets without the need for direct ownership or hands-on management of real estate assets. Indirect foreign investment typically takes the form of purchasing units or shares in Real Estate Investment Trusts (REITs) or publicly listed real estate companies, offering real opportunities for portfolio diversification and enhanced financial returns within a regulated and liquid environment.
This type of investment has become particularly attractive given the challenges posed by traditional real estate investments, such as limited liquidity, high capital requirements, and complex asset management. Therefore, analyzing real-world experiences of major investment funds and real estate companies operating in this domain becomes essential in order to identify the actual financial returns achieved, and to assess their stability and sustainability over the short, medium, and long term. Reviewing such experiences provides a robust knowledge base from which clear quantitative and qualitative indicators can be derived regarding the attractiveness of indirect foreign investment and its contribution to achieving investors' financial goals.
The importance of this analysis also lies in its ability to lay the groundwork for a broader understanding of the advantages of this investment model—whether in terms of liquidity, professional management, regular income distribution, or regulatory protection—while simultaneously highlighting potential challenges investors may face, such as limited direct control, high administrative costs, or risks related to transparency and disclosure. As such, evaluating practical experiences and historical data becomes a crucial step in assessing the true feasibility of this investment approach and in enabling well-informed investment decisions that align with investors' objectives and the characteristics of targeted markets.
- Teacher: Nadia Zouggaret