The Shift From Public Markets to Private Real Estate Investments
Private real estate investment provides value in any economic environment, but it's essential in times of volatility and uncertainty.
On December 7th, the Bank of Canada increased the overnight rate by 50 basis points to battle inflation. In light of this increase, and with public markets down, investing in private real estate is becoming an increasingly attractive option for investors. We’re seeing this shift in public market vs. private market investment, with more funds shifting to the latter recently.
Real estate investments provide value in any economic environment, but in times of volatility and uncertainty – like we are experiencing now - it’s essential.
Given the public market volatility over the past 12 months – and foreseeable next 12-18 months – investing in private real estate has become incredibly important for portfolio diversification and the ability for investors to build long-term sustainable wealth.
Real estate investments hedge against inflation is also more important than ever, with inflation being at its highest point in well over a decade. Specifically, private real estate investments protect against inflation, because:
- Property values historically rise with inflation
- Rent prices on investment properties increase to keep pace with inflation
- The relative amount of monthly mortgage payments will fall over time with a fixed-rate mortgage
Parvis offers private real estate investment opportunities that provide access to direct deal investing, enabling a level of transparency and control over assets within your portfolio that is simply not attainable in a public market.