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Ways to Invest in Real Estate - the Pros and Cons

November 03, 2022

Weekly Real Estate News, Parcl Updates & Educational Content

Real estate is the world’s largest asset class, yet it is illiquid with high barriers to entry. At the same time, there remains immense demand, from investors large and small, to gain access to real estate returns. This dynamic has catalyzed a growing sub-industry of alternative real estate investment platforms. In this article we will provide a comprehensive market landscape of available options and how Parcl is developing a differentiated real estate derivatives platform via blockchain rails.

In case you missed it

The Parcl Protocol v2 waitlist is officially open! The Parcl Protocol is a DeFi investment platform that allows users to trade the price movements of real estate markets around the world. Users can discover global real estate markets, gain detailed insights, and have the opportunity to either buy or short real estate markets based on whether they think real world property values will increase or decrease.

The monetary policy response to COVID-19 was beneficial for most asset classes, given near 0% interest rates tend to drive investment and risk-taking. This dynamic was very obvious in technology stocks (as defined by the Nasdaq), cryptocurrencies, and real estate. In fact, real estate was the best performing asset class on a risk (volatility) adjusted basis in 2021 with a Sharpe ratio of ~3 (as calculated by return/volatility).

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Over the last couple of years the Phoenix Metropolitan Area was amongst the most demanded real estate markets in the country.

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