REAL ASSETS What is real estate? Real estate covers a number of property types – from residential to industrial – and is part of the real assets category of investment. Real assets represent one of the fastest growing segments of the alternative-investments market, which includes hedge funds and private equity. Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. What assets can you invest in? Real estate investments include both recognisable properties, such as: Apartments Offices Shopping malls Industrial logistics warehouses And growing areas, including: Data centres – Infrastructure that stores, processes and distributes large amounts of data Self-storage – Units used by consumers and companies to store goods Manufactured housing – A house that is largely assembled in a factory and then transported to a building site Megatrends and real estate Real estate investors should benefit from the many megatrends we’re seeing across the world Learn More What are Megatrends Megatrends are powerful and transformative forces that can change the trajectory of the global economy. And they are about more than successful sectors or companies – they are about driving innovation and about fundamentally changing the way companies do business. We believe identifying potential megatrends and investing in expected transformations early is key to taking full advantage of real estate investments with long-term growth potential. We think the following megatrends will be shaping the way we live and work in the future. Technological Change Demographics & Social Change Climate Change & Resource Scarcity Our reliance on data – driving demand in data centres & towers E-commerce is growing – meaning more large processing facilities and warehouses Why should investors consider real estate in their portfolio? Real estate investments are physical assets with clearly defined earnings and income – in the form of rent – that is paid as part of a contract. Real estate has the potential to provide investors with: 01 Sustainable income The potential for a sustainable income and competitive capital returns. Income generated from real estate tends to be higher than the dividends received from traditional stocks. 02 Protection against inflation If inflation rises, interest rates tend to rise too, which hurts the returns made from bonds. This is not the case with the income and capital gains made from property. 03 Diversification Because real estate returns doesn’t mirror either stock or bond returns, they can offer much-needed diversification. This helps to lower overall risk and increase potential returns across your wider investment portfolio. Risk. Diversification and asset allocation may not fully protect you from market risk. Risk. There can be no guarantee that the investment strategy can be successful, and the value of investments may go down as well as up. Why BlackRock for real estate? We believe successful investing requires a local market presence with the expertise to buy, manage and sell real estate assets. BlackRock Real Estate’s breadth, expertise and solutions are critical to achieving this objective Breadth Deep local knowledge that drives global investment strategy Expertise Investment experience spanning multiple decades Solutions Customised real estate investment solutions with different levels of risk and potential returns Risk. There is no guarantee that a positive investment outcome will be achieved. Real Estate Investment Trusts 101 Real estate investment trusts, usually referred to as REITs, invest in real estate on behalf of their investors. The aim is to buy properties which provide a rental income and can be sold on at a profit. Learn more Explore more Impact of COVID on real estate Real Assets Outlook Alternative Investments As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. Since 1999, we've been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals. CORPORATE Careers Newsroom Investor relations LEGAL Terms & conditions Privacy policy Business continuity Modern Slavery Statement Best Ex policy and reports s172 and Corporate Governance Statements © 2021 BlackRock, Inc. All rights reserved. MKTGH1020E-1356676