Discover another way to invest your money in real estate by betting on the stocks of listed companies in this sector and the large stocks that are accessible and popular today.
Real estate investment has met with real success for several years with individuals who see it as a lasting way to grow their capital. But buying real estate with the aim of renting it out or making a capital gain is not the only way to make investments in this booming sector. Indeed, some investors choose to go through the stock market to do this. In this article, we are going to tell you how you can invest in real estate through stock exchange and in what sector.
The real estate sectors in which to invest in the stock market:
If you choose to invest in stocks in the real estate industry, you will be spoiled for choice as to the types of stocks and segments available. Let us remember that real estate is a very vast sector of activity which includes several categories of companies that we will present to you here in a little more detail.
- Real estate companies: First of all, real estate companies are the first example of real estate companies in which you can invest. Among the actions that are generally available from banks and brokers, we find in particular those of the Unibail Rodamco Westfield, Klépierre or Covivio groups.
- Promoters: Real estate development companies are also companies on which it is possible to make your stock market investments. These include companies such as Nexity, Kaufman & Broad or LNC or Maison France Confort for the most famous.
- Construction companies: Another example of companies on which it is possible to make stock market investments concerns construction companies. Among the latter, we naturally find the Vinci share, which is one of the leaders in this sector, or Bouygues or ACS.
- Materials companies: Finally, the last way, this time rather indirect, to invest in the real estate sector on the stock market is through the shares of companies specializing in construction materials. It may in particular be Saint-Gobain or even Vicat for the best known.
As you can see, the choice is large enough when it comes to real estate securities on the stock market and you can move towards one or another of these segments according to your knowledge and your ambitions.
The different ways to speculate on real estate stocks on the stock market:
Now that you have a better idea of the types of securities you can invest in on the real estate stock market, the question is how to go about it. There are actually different ways to make this kind of investment today.
The first, of course, is to acquire shares in this sector with the aim of building up or supplying a stock market portfolio. For this, it will of course be necessary to go through an investment product such as a PEA (Plan d’Epargne en Actions) or even a securities account. This method allows the investor, in addition to betting on a possible future capital gain of these securities, to receive, in most cases, dividends depending on the results of the company. There are also funds specializing in the field of real estate which offer a basket of value exclusively or partially selected in this area.
Another solution for investing in real estate through stock market stocks without a portfolio is to speculate directly on their price using specific contracts or instruments such as ETFs or CFDs. These instruments allow you to speculate on the rise or fall in the price of a security without having to buy it and therefore without being a shareholder in these companies. These contracts are also accessible online since they are offered by specialized brokers or “brokers”. Note here that most investors who make this type of investment do so for shorter-term strategies than in the context of an acquisition of traditional securities.
How to choose your real estate actions?
Finally, to choose the shares in which you want to invest in order to place your capital in the real estate business sector, this choice will depend on various factors and criteria. You must first assess your knowledge of the real estate market in general and stock market speculation. Also remember to precisely determine your investment horizon as well as your objectives and, of course, your level of risk aversion.
Depending on these different criteria, you can orient your choice towards high yielding stocks, high performing stocks or even volatile or more stable stocks. It is important here to make this choice taking into account your investor profile above all. It should also be remembered that stock market speculation remains an activity reserved for investors with certain basic knowledge essential to understanding the issues in this sector.