Direct real estate investing involves direct ownership of the physical asset mainly in the form of land, commercial or residential property. Legality of ownership which confirms an equity stake, interest, obligation or right is registered in a ‘deed’ (title deed or property deed) in most jurisdictions. Apart from heir or heirs’ property, eligibility for direct real estate ownership is mainly contingent on the financial capacity of the investor (buyer), zones or units permitted for acquisition, mutual agreement between the buyer and seller, and the access provisions in case of foreign ownership.

Due to the illiquid nature of direct real estate and involvement of high transaction costs, extensive investment in direct real estate often leads to low levels of portfolio diversification and high levels of asset-specific risk. Hence, it is vital for an investor to attain exceptional performance by setting a justifiable ‘target share’ for direct real estate investments in their portfolio to balance market uncertainty. Despite this complexity, links below demonstrate the benefits of investing in direct real estate.