Depending on the legal rights to purchase, definite requirements and financial capacity of the investor, direct real estate offers wide-range of options suitable for investment. Chart below illustrates notable types of direct real estate where transactions are globally evident.

Appreciation in capital value and returns from each type of investment is distinct and correlates to the appeal / demand, consistent utilization, location factors, local economic development, and economic growth of the region. Depreciation is innate and obsolescence subjective as occupier’s needs constantly evolve due to new / upcoming developments in the market offering more advanced characteristics relating to adaptability, technology and sustainability.

Any form of significant decrease in market value, detrimental changes in condition, excess rehabilitation costs, operating losses and disposal before holding period can adversely impact the performance of the investor’s portfolio; hence, effective management is required for safeguarding profitability.