Capital raised for nonlisted real estate hit record low in 2023

Fund managers raised a minimum of only €117 billion ($130 billion) for nonlisted real estate globally in 2023, according to the Capital Raising Survey 2024, published today by ANREV, INREV and NCREIF.

This is the lowest volume of capital raised since 2015, with activity falling across all global regions. It represents a decline of more than 50 percent from the minimum of €246 billion ($263 billion) raised in 2022. This lackluster performance likely was driven by a combination of low-transaction volumes and negative returns, set against a backdrop of macroeconomic headwinds and geopolitical uncertainty.

A quarter of the 83 managers who contributed to the survey did not raise any capital last year, citing a lack of suitable product as the main reason. But the fact that 86 percent of the capital raised in 2023 is yet to be invested undoubtedly affected their ability and willingness to raise more equity.

European investors returned as the leading source