Expected Real Estate Investor Activity for the Next 12 Months

by Preqin

  • 31 Oct 2018
  • RE

Over three-quarters (76%) of real estate investors that are planning new commitments in the next 12 months will target core funds, up notably from 60% in Q3 2017. Sixty-seven percent of investors will commit to value-added funds, while 66% will target opportunistic vehicles.

As seen in the chart below, investors are planning to place increasing amounts of capital in real estate in the next 12 months: 57% of investors are looking to commit at least $100mn to the asset class, a much larger proportion than the 39% seen in Q3 2017.

Europe looks set to remain the most favoured region for real estate investment in the coming year: 72% of investors are looking to target the region, up from just over half (51%) at this point last year. Funds focused on North America and Asia-Pacific are favoured by 63% and 43% of investors respectively, while half of investors will seek funds that provide them with global exposure.

Although capital concentration remains prevalent within the industry, investors are looking to place their capital with multiple managers in the year ahead: 41% of investors are planning commitments to four or more funds, up from a third of investors at this point in 2017.

To see more charts detailing real estate investors' fund searches from Q3 2018 and more, download the Preqin Quarterly Update: Real Estate, Q3 2018.

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