Preqin carried out a survey of 166 institutional private real estate investors between June and August 2010. Investors of varying size, type and geographic location were questioned about their private real estate portfolios and their approach to the market in the next 12 months.
42% of the investors that will be active in private real estate in the next 12 months will be targeting both domestic and overseas markets and 37% expect to invest only in domestic markets. 12% will invest only in property markets abroad, perhaps because they have significant domestic allocations and are looking to diversify or expand their international portfolios. A significant 45% stated an interest in Asia and Rest of World vehicles, showing that investors are still eager to benefit from the rapid growth in emerging economies.
In terms of the fund strategies that investors are hoping to commit to in the next 12 months, 43% of respondents will be looking to allocate to core vehicles and 38% to opportunistic strategies. Value added strategies are not favoured as much as they have been in the past, with only 28% stating an interest in investing in these funds in the coming year. Distressed and debt funds will be targeted by 22% and 18% of these investors respectively. 20% of investors were interested in committing to funds utilizing core-plus strategies while only 3% were interested in other fund types such as funds of funds and secondaries. 15% were still unsure as to which fund types they will be focusing on in the next 12 months.
You can view the full results of this real estate investor survey here.