Opportunistic strategies are the highest-risk category. They encompass investments in properties or assets with high improvement potential. Investors may seek distressed or non-core assets in emerging markets. Properties, when bought, might have little to no cash flow at the beginning. Development projects are also opportunistic investments. One can invest in land for the development of a new building. This could be a residential, commercial, or mixed-use property. The process is mostly complex, and the various steps usually include regulatory approvals and construction risks.
This approach requires a deep knowledge of market dynamics. Investors have to be capable of telling where and when value will be unlocked. Because of the risks, opportunistic strategies generally offer the highest possible returns. In the same breath, opportunistic strategies demand ample knowledge and material. Most opportunities appeal to institutional investors or seasoned real estate firms