Investor confidence in private real estate remains high

A total of €121.8 billion ($129.76 billion) of new equity was raised for private real estate funds in 2016, according to a new capital-raising survey by INREV, conducted in conjunction with ANREV and NCREIF.

Nonlisted real estate remains in favor with investors of all types, especially pension funds and insurance companies, and Europe remains the most popular target market, with the largest share of capital raised for nonlisted real estate funds.

There is a notable shift in sector preferences, with 64.3 percent earmarked for multi-sector funds versus 35.7 percent for single-sector funds. Germany and the Netherlands accounted for the largest share of capital for single-country funds, at 12.6 percent and 12.3 percent, respectively, reflecting a shift in focus.

This is the 11th annual survey exploring fund managers’ capital-raising activities, and for the third year it has been carried out on a global basis by INREV, ANREV and NCREIF.

To view a snapshot and full report, click here.