€72b of capital set to hit real estate in 2019

Despite the advent of late cycle, investors are still steadfast in their commitment to the sector with many increasing their allocations. According to the global Investment Intentions Survey 2019 by INREV, current average allocations to real estate increased to 10 percent from 8.9 percent in 2018, against an increase in target allocations to 10.4 percent from 10.2 percent, significantly narrowing the gap between the two for the first time.

Key highlights include:

The real estate sector is expected to see an influx of €72.4 billion ($82 billion) in new capital in 2019. The gap between current and target allocations, 10 percent and 10.4 percent, respectively, has narrowed. Investment in 2019 is likely to fall under less riskier strategies than previously. There is a notable shift toward core and away from opportunity funds. The United Kingdom has slipped to second place with Germany taking the top spot. Offic