The property portfolio must be monitored at regular intervals, also in terms of a balanced asset allocation. It is essential to avoid overweighting the property ratio or even cluster risks. The property portfolio may have come into existence:
- as family real estate
- as a long-standing investment portfolio
- as an inherited component that was neglected by a new management
- as the result of a change in trends with reduced demand (demographic change)
- due to other contributory factors
If certain properties fail to increase in value and marketing opportunities deteriorate, the property ratio concerned must be reduced or scaled back to a reasonable level.