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Real estate investment funds


 

The market for real estate investment vehicles is constantly developing to provide investors with flexible and innovative real estate investment products. The growth in the number of real estate investment vehicles set up in Luxembourg has outpaced the European average and make Luxembourg one of the best choice for real estate funds.

real estate - Luxembourg assets on the rise

ALFI’s annual Real Estate Investment Fund Survey in conjunction with EY Luxembourg revealed that real estate assets in Luxembourg had reached more than €39bn by the middle of 2015, up from €32bn a year before. The total number of REIFs increased by 10% from the last survey and, since 2006, the number of direct REIFs has grown by a compound annual rate of 16.45%.

The RAIF structure allows real estate fund initiators to set up Luxembourg-domiciled funds that are not subject to regulatory approval by the Luxembourg supervisory authority. This option permits the achievement of a significantly enhanced time-to-market for new fund launches.

Overview of the latest figures on Luxembourg real estate investment funds:

(*) Number of single funds plus number of sub-funds of umbrella structures

(*) Number of single funds plus number of sub-funds of umbrella structures

 

The choice of a real estate vehicle will depend on the type of funding that needs to be raised, the proposed investor base, the type of investments to be made and any specific tax considerations.

Real estate investment vehicles may be set up as:

Regulated scheme (i.e. subject to the supervision of the CSSF):

Unregulated scheme:

 

     

Updated on 27/01/17  
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