Features of the Operation of Real Estate Investment Funds

This article highlights the topic of the peculiarities of real estate investment funds’ operations. The article examines the historical development of the real estate investment market – from private individuals or organizations to PropTech platforms. The main categories of investors are analyzed, including: institutional investors, real estate investment trusts, private investors, direct investment funds, corporate investors, as well as crowdfunding online platforms. Their main characteristics and investment strategies are systematized. The dynamics of off-market assets under management over the last fifteen years is presented, along with an analysis of the dynamics of total investment volumes across real estate segments from 2011 to 2024, specifically for office, retail, warehouse, residential, and hotel segments. A systematic comparison of the key characteristics of private equity funds and real estate investment trusts (which fall under the general category of real estate investment funds) has been conducted from the perspective of their structure and categories of investors, investment goals and timeframes, minimum investment amounts and liquidity, levels of risk, and expected returns. The key functions of real estate investment funds that ensure effective management and profitability from real estate investments have been summarized, as well as the benefits for investors from engaging in investment activities through real estate investment funds. The main structural elements of private equity funds have been schematically represented and characterized – the management company, investors, administrator, auditor, etc., whose tasks are to ensure professional asset management, strategic and operational management of the funds, monitoring and protecting the interests of investors, as well as distributing responsibilities among stakeholders and minimizing risks.