emerging
Capital Market Development
Underdeveloped capital markets in many EBRD regions hinder real estate sector growth, necessitating the development of financial vehicles like REITs and attracting institutional investors.
Timeframe
long-term
Categories
Subcategories
Impact areas
Detailed Analysis
Access to finance through capital markets remains a challenge in many EBRD countries of operation. The document emphasizes the need for "financial vehicles such as real estate investment trusts (REITs) and property funds" to support the development of the built environment. These vehicles can provide access to capital, enhance market stability, and broaden real estate ownership. However, regulatory frameworks and market conditions often limit their development. Attracting institutional investors is also crucial for channeling funding to the real estate and tourism sectors.
Context Signals
Fragile market conditions in many EBRD CoOs.
Limited development of REITs and property funds.
Low allocation of institutional investor assets to developing countries.
Edge
Potential for fintech solutions to streamline access to capital for real estate projects.
Development of innovative blended finance mechanisms to de-risk investments.
Growing interest in impact investing in sustainable real estate projects.
