IPE: Rush May Be Over
Institutional investors are being more cautious in their approach to real estate investment,
according to a new report.
Research carried out by Cornell University and consultancy Hodes Weill found that 60% of global
investors are less convinced of the investment case for real estate than they were a year ago.
The 2014 Institutional Real Estate Allocations Monitor, a survey of 231 – predominantly US –
institutions revealed a “decline in conviction” over the past year, with interest “moderating”.
“At five years into a market recovery, this shift in sentiment is not surprising,” the report said,
noting that EMEA investors remained the most optimistic.
Rising interest rates, slow economic growth, new supply and too much capital pushing valuations
ahead of fundamentals were all reasons for the reduced appetite.
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