Capital raised for European non-listed real estate debt hits highest level since 2015

2020 recorded the highest share of capital raised for European non-listed real estate debt products since 2015, a sharp increase to 19 percent from just 5 percent in 2019, according to The ANREV/INREV/PREA Investment Intentions Survey 2021. Traditional equity real estate players are stepping in to fill the funding gap in the market in search of yield and are attracted by diversification benefits that non-listed real estate debt has to offer.

European investors in particular are expected to continue allocating to the asset class. The ANREV/INREV/PREA Investment Intentions Survey 2021 highlights that 21.9 percent of European investors plan to increase allocations to European non-listed debt products over the next two years (up from 16.3 percent in 2020). Similarly, 28.1 percent expect to maintain their current allocations, and none indicate an intention to decrease their allocations over this period. This contrasts with the Asia Pacific and North American investors, who indicat