In Fidelity’s recent survey of 83 single-family offices, with a total net worth of $432 billion, 36 percent of respondents indicated that they plan to increase their investments in direct real estate investments over the next three years, while 51 percent said they expect to maintain the level of investment in the sector of that time span.
Meanwhile, the allocations toward direct real estate among the 83 surveyed offices have decreased over the past years, going from 10 percent of asset allocation in December 2018 to 9 percent in December 2020 and 8 percent in December 2022.
Over that same time span, allocations have increased significantly in U.S. equities holdings, from 26 percent in December 2018 to 32 percent in December 2020 to 37 percent in December 2022.
Regarding where family offices are sourcing their investment ideas, 69 percent said other family offices were a primary source, while 43 percent said private equity fund managers, 31 percent said consul