Is all that money pouring into real estate from places like China and the Middle East smart money or dumb?

Although dumb might not be the best way to describe investors who are snatching up properties in North America, Europe, Asia and Australia as if financial crashes are once-in-a-lifetime events, a new report by property data analytics firm IPD/MSCI warns that many don’t appreciate the complexity of real estate as an asset class or the limitations of benchmarking data, the Financial Times reports.

Demand for property has investors willing to take bigger risks — putting money into development, for example, because there’s a shortage of property for sale, said IPD Managing Director Peter Hobbs.

Hobbs said investors putting money into real estate in other countries may not have a sufficiently sophisticated understanding of the markets they are investing in, and that even large, sophisticated companies are using the wrong models to assess risk.

It goes without saying that IPD stands ready to provide property data and risk analysis to help investors steer clear of bad investments. Source: ft.com.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription