The large institutional investors generally have future obligations such as pensions or insurance payments. They are always looking for sufficient coverage in order to be able to meet those obligations. In addition, for this group it is important to minimise the yield risk. By spreading investments, the risk can be demonstrably reduced, particularly if the returns on the various investments display a low degree of correlation. Real estate naturally has a low correlation with assets such as bonds and shares, which means adding real estate to a mixed portfolio is often considered a sensible move. Whether real estate is also a good inflation hedge is open to question. After all, although most rental contracts are indexed-linked, in the case of commercial property, rents are often corrected to reflect market levels. This makes the market for investing in rental apartments even more attractive.

Private individuals , also are increasingly moving into the real estate investment market, despite the relatively large capital requirement, illiquidity and the difficulty of spreading risks in a small portfolio. Thanks to a number of developments, the direct real estate market has become accessible to private individuals. For example, increased competition in the financing market, crowdfunding and closed-end real estate funds. Even so, many new private real estate investors are put off by a lack of market knowledge or detailed knowledge of real estate.

Naturally, no investment is without risk, as the recent financial crisis has certainly shown. All the same, there are various matters which an investor in real estate needs to consider, both when purchasing and operating the building. When buying a building it is important to investigate how secure the flow of rental income will be and what the condition of the building is in structural and environmental terms. In addition, a survey of its legal and fiscal status is recommended. During the operation of the building, issues include uncertainties such as tenants giving notice, operating costs and maintenance. It is also important to know how to deal with non-payment by tenants or changes to rental legislation. Buying real estate and operating it is an intensive process which demands time, attention and investment – not only to assure cash flow but also in order to maintain or improve its market value. Banks consider this important in the context of the LTV (Loan To Value). In addition, at some point the property will be resold. 

It is clear that real estate offers excellent opportunities for investors. It is important to limit the risks or even eliminate them as much as possible and to optimise the returns. This can be done at the level of the strategic portfolio, the complex or the building. For new real estate investors, expert purchasing support and outsourcing management can make a significant contribution to achieving these objectives. In many cases, parties who are already active in real estate can also benefit from the market knowledge of real estate agents and from efficiencies and cost savings in property management. This, too, can often serve to reduce risk and increase returns – more than paying for the service provider's fee.