Why Institutional Investors Love Real Estate Secrets Revealed
Diversification and Risk Mitigation
Real estate also serves as a powerful diversification tool. By spreading investments across different asset classes, institutional investors can mitigate risks associated with market volatility. Real estate's low correlation with stocks and bonds means that it can stabilize portfolios during economic downturns. This risk mitigation is crucial for institutions that need to meet long-term liabilities, such as pension payments or insurance claims2.