“Why Real Estate is an Essential Component of Portfolio Allocation”

Real estate provides enhanced benefits for an investor when included with other assets as part of portfolio allocation. The reason behind this outsized benefit is twofold: first, real estate adds a diversified return stream that bolsters the average annualized return to the portfolio; second, and crucially, real estate reduces the variability of returns to a portfolio by adding a non-correlated asset that dampens the price swings from other asset classes and reduces the chances of a loss of value while maintaining the level of expected return.