Key Risk Considerations in Real Estate Investment in Emerging Markets

As a portfolio manager at a leading investment firm, you are tasked with analyzing a proposed investment in a real estate fund that specializes in emerging markets. The fund’s strategy focuses on both residential and commercial properties. Given the diversity in geographic locations, regulatory environments, and varying economic conditions, it is crucial to assess the specific risks associated with this investment.

In your analysis, address the following:

1. Identify and discuss at least three key risk considerations related to investing in real estate within emerging markets.
2. For each risk, suggest potential mitigation strategies that the fund could employ to manage these risks effectively.
3. Evaluate the implications of these risks and mitigations on the overall portfolio construction and investment strategy.

Your response should include references to relevant concepts in real estate investment, as well as practical applications that demonstrate a thorough understanding of the complexities involved in investing in emerging markets.