Preqin Quarterly Update: Real Estate, Q1 2016
Amid a relatively strong quarter for fundraising (44 funds closed securing $21bn), the largest real estate firms still dominate the market: two-thirds of capital raised in Q1 2016 came from the top 10 largest funds to close. With continued demand for real estate and the resulting increase in valuations, the performance of the asset class has remained strong. Closed-end private real estate funds have posted positive average changes in NAV for 21 consecutive quarters, and the PrEQIn All Real Estate Index has shown continued growth. Challenging prospects are ahead for fund managers, however, with a record 492 funds currently seeking capital.