For the first time since the survey’s inception in 2013, institutional target allocations to real estate have declined, dropping 10 basis points to 10.7 percent in 2025, finds the 13th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate. Despite this recent reduction, institutions expect to increase target allocations by 10 basis points in 2026, led by institutions based in Europe, Middle East and Africa (EMEA) reporting the highest conviction in the asset class this year.
The decline in target allocations follows a three-year plateau at 10.8 percent from 2022 through 2024, ending a nearly decade-long growth trend that saw target allocations increase more than 20 percent between 2013 and 2022. The reduction in target allocations, which was predicted in last year’s report, is the result of market uncertainty combined with competition from other asset allocations, in
