According to our research, the next 12 months may see rapid changes in real estate arising from a variety of sources including environmental, social and governance-related (ESG) risks, geopolitical uncertainty and disruptive technology.
In these uncertain times, it is crucial for large asset owners to make well-informed investment decisions. MSCI Real Estate understands the complexities of the industry and offers holistic solutions that can bring clarity to the complex landscape of real estate investment.
Private Assets: From Alternative to Mainstream
The potential of private assets is transforming it from alternative to mainstream investment. In the next 5-10 years, portfolio allocations could rise to as much as 25%*. However, the opacity and illiquidity associated with private assets investing still pose challenges. Asset owners need clarity to effectively operate in this space. MSCI Real Estate is here to help. With a database that spans $2 trillion of private real estate assets across more than 30 countries**, our objective analytics and actionable insights empower asset owners to make better decisions throughout the entire investment process.
Integrating ESG for Sustainable Investment
Real estate investors are increasingly integrating environmental, social, and governance (ESG) considerations into their portfolio decisions***. The impact of climate change is becoming more evident, and its economic consequences could be twice as large as that of the Great Recession. As certain areas experience the effects of climate change sooner than others, such as coastal zones with a high risk of flooding, the value of real estate in these areas may lag behind. MSCI Real Estate's research teams provide critical insights that can help identify ESG risks and opportunities that traditional investment research may overlook.
Data-Informed Positioning for Better Performance
As the current expansionary cycle continues, institutional investors face the challenge of positioning their portfolios. Whether taking a defensive stance to hedge against a potential downturn or seeking properties with more growth potential in cash flow, data is crucial. MSCI Real Estate's Enterprise Analytics and Global Intel solutions provide the necessary tools to assess portfolios and markets comprehensively. By analyzing asset-level historical data and understanding how specific combinations of risk factors have performed in different market conditions, investors can gain valuable insights.
Future-Ready Decisions for Institutional Investors
Determining future allocation in the new context of country diversification, expansion into private assets, and erosion of domestic bias can be challenging for institutional investors. MSCI's Global Intel solution provides market characteristics such as size, price, yields, and historical performance. In addition, MSCI's indexes support positioning against other asset classes like infrastructure. With our research power, investors gain a better understanding of the market and peer performance within our significant institutional investors network.
Communicating Future Strategy with Confidence
Effective communication is vital when implementing a shift in investment strategy. Whether reducing retail exposure or increasing private asset allocation, asset owners need to convey the drivers behind their decisions across all levels of the organization. MSCI Real Estate's solutions offer flexible and customizable internal reporting, providing a common language that bridges any communication gap between risk, real estate, and c-suite decision-makers.
In this ever-changing real estate landscape, MSCI Real Estate is your trusted partner. With our expertise, authoritativeness, trustworthiness, and extensive experience, we provide the insights and solutions necessary to navigate the future of real estate investment.
Talk to an expert today to explore how MSCI Real Estate can help you make informed investment decisions.
According to data from JP Morgan, IPE Real Assets, and comments by Morgan Stanley. Based on 2017 year-end figures of MSCI Real Estate. MSCI 2019 emerging real estate trends. ****MSCI 2019 ESG trends to watch.