Publicly traded real estate, whether packaged inside real estate mutual funds or exchange traded funds (ETFs), has been a perennial investor favorite, offering decent income payouts, good portfolio diversification, inflation protection, and tax benefits.
Lately, as a result of the coronavirus pandemic, real estate has encountered some serious headwinds.
But if you look closer, you’ll see that while some real estate sectors are deeply threatened by COVID-19 lockdowns and work-from-home trends, others are positively booming.
For example, hotels, gaming, retail and many office investments are facing tough times and an uncertain future due to the pandemic.
But other real estate sectors like data centers, e-commerce facilities, self storage, and cell towers are experiencing strong demand, presenting potentially attractive investment opportunities for the shrewd investor.
The Takeaway: An experienced real estate fund manager can add value by giving you a nuanced analysis of how current trends are affecting property markets, and show you why it pays to take a hard look below the surface. While some types of real estate are struggling, others are capitalizing on work-from-home and e-commerce trends. Pro real estate insights can help you navigate difficult market environments and find attractive investment opportunities.