Real Estate Allocations Surpass 10% for First Time
Global institutional allocations to real estate have exceeded 10% for the first time, but investor confidence in the asset class has fallen year on year.
The findings from the Institutional Real Estate Allocations Monitor show the average target real estate allocation increased to 10.1% in 2017, up from 9.9% in 2016 and 8.9% in 2013—the year in which the survey was first conducted.
Over the past five years, institutional portfolios have increased their exposure to real estate from 8.5% to 9.1% invested. This implies that real estate portfolios have increased by approximately $0.5trn in total value, through a combination of capital appreciation and new investments.