5 Year REPORT: Emerging Tech  Cities, Capital Flow, Home Bias Investing, CRE Cycles, Shadow Wealth, Logistics, REITs, Infrastructure, Hotels, Joint Ventures, Mixed Use Development, Blockchain and Portfolio Diversification

Basar Group Investment advisory is focused on research and global capital flow at all stages of the real estate cycle. It is our view to see the world as a single economy evolving through a dynamic interplay. The current core asset investment model in the US and Europe is evolving through the early stages of a gradual declining asset valuation- a deflating stealth bubble. The traditional investment trend is for global investors to concentrate most of the capital flow in major markets while ignoring the healthy expansion of capital into emerging GDP. Seventy percent of global real estate value is concentrated in the major cities of the of G-7 nations. Our focus of this report is on cities that are creating sustainable value creation. The traditional investment cycle goes through a cyclical process of boom and bust of the circle seven. However, the current 11-year cycle has been stimulated by developed nations (QE) monetary policies, foreign investors, home bias and shadow banking. One of the unforeseen catalysts for the next recession is lack of capital deployment to assets that create sustainable value(financial imbalances).

The total transaction volume for global commercial real estate was 736 billion US dollars for 2018.The US market represented 51% percent of the global CRE transaction volume. The majority of deal flow was invested in remnants of core assets and secondary markets driven by cross border mega deals, shifting to infrastructure and logistics investment strategies of transaction data driven e commerce economies.The static nature of the real estate industry has directed global investors to parked their risked adjusted capital in a few prime locations. The investment community in mature economies has been compliant to “home bias” for decades meaning the industry has become passive to global financial integration and the quantitative realities of balance yield investing. In 2019 the Goldman Sachs look into various historical catalyst or drivers of recession they included oil shocks, industrial shocks, inflation leading to aggressively rising rates, rising rates, fiscal tightening, and financial imbalances.

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