A majority (72 percent) of respondents to Invesco’s ninth annual Global Sovereign Asset Management Study believe that depressed valuations in the real estate sector in the wake of the COVID-19 pandemic represent a strong opportunity to invest in the asset class.
This year’s study found that, among sovereigns, allocations to real estate have fallen for the first time since 2018. However, it found that any pause in deal making is likely to be brief and may, in fact, be followed by a period of more intense competition as sovereigns look to make up for lost time. Real estate also remains the most favored alternative asset compared to other classes such as private equity, infrastructure, or hedge funds, at 8.3 percent of overall asset allocation.
Invesco’s study, the largest of its type, detailed the views and opinions of 141 chief investment officers, heads of asset classes and senior portfolio strategists at 82 sovereign wealth funds and 59 central ban
