Direct investment programs are experiencing a resurgence in popularity, largely through the real estate market, according to newly released data. 
Sales of publicly registered direct investment programs reached $7.6 billion in 2003, the highest level in 15 years and up 76% from $4.3 billion a year earlier. 

   The 78% increase last year represents a growth trend that started after 1999, when sales of direct investment programs hit a 20-year low of $840 million. The peak of popularity was 1987, when sales were $10.7 billion. 
“The direct investment market is back,” says Larry Goff, chairman of the Investment Program Association in Washington, D.C., the association of the direct investment industry. “New investment has soared as investors recognize the diversification and attractive asset alternatives offered by this investment vehicle.” 

   One of the trends underlying the growth is investors’ desire for something that provides better yields than Treasury bonds along with capital appreciation, according to Robert A. Stanger of Robert A. Stanger & Co. in Shrewsbury, N.J., which tracks direct investment program sales. 
    
   “Direct investment programs can provide these benefits,” he says. “The very strong growth in real estate programs in particular has been boosted by historically low mortgage debt costs and the continued outstanding performance of publicly traded REITs.” 

Among the trends in the latest sales data: 

   Real estate programs are dominating the market, including equity and mortgage loan programs and untraded REITs. Real estate program sales totaled $7.3 billion, up from $4 billion a year earlier. Untraded REITs accounted for $7.0 billion of the total.