The Upswing of the Housing Market!
Over the last few years, the savings sector has undergone a process of transformation that has allowed the operators to offer their customers increasingly innovative products and services able to meet the demand for new financial products. This is how real estate investment funds are created that transform real estate investments into units of financial assets that in turn allow them to generate liquidity without the investor having to acquire a property directly.
What are real estate funds?
Real estate funds invest assets of no less than two-thirds in real estate, real estate rights and investments in real estate companies. In other words, they provide for a right to reimbursement of the subscribed portion only at a certain expiry date. The minimum duration envisaged by these particular types of financial investments is 10 years, while the maximum can be as high as 30. The expiry date also marks the time when the assets will be distributed.
How does a real estate fund work?
Real estate funds are born with an initial pre-established endowment of assets, variable due to the normal changes in value connected to the appreciation or depreciation of assets. This patrimony is divided into a number of shares. The first phase of the birth of a real estate fund starts with its subscription. The fund is in fact to collect a certain amount of money from its investors. Then there is a second phase, in which, once the money has been collected, the fund selects the properties to be surveyed. The listing on a regulated market is required by law and guarantees greater liquidity to the capital.
Does the upswing of the housing market push real estate funds?
As reported in the Quotidiano Nazionale, with the upswing of the housing market is also awakening real estate investment. In 2017, they write, there was the golden year for asset management in the world, the assets reached at the end of the year amounted to 2,830 billion euros, an increase of 10.4% compared to the previous year. For 2018 Italy should align with the rest of Europe. Mario Breglia (president of “Scenari Immobiliari”) comments: << In Italy, real estate assets held directly by the funds amount to € 58 billion, including foreign investments. There is an increase in active funds, 420 in total, also for use as a vehicle by foreign entities operating in the Italian real estate market >>. << The outlook for 2018 is positive and in line with the previous year. Political change, at the moment, does not seem to have changed the strategies of the Sgr which, on the contrary, are optimistic about the next three years and believe in the growth of the sector, with more funds and greater diversification of products >>.