The 2019 survey reveals that investors are increasingly cautious in their views of their investment portfolios. U.S. investors indicate a slightly more defensive stance within their real estate portfolios, as they maintain a strong emphasis on domestic core product while moderating their value-added and foreign investments. Globally, investors indicate expected real estate capital flows in 2019 to be 15 percent lower than their actual commitments in 2018. This drop is reported across both U.S. (down 16 percent) and foreign respondents (down 13 percent).
The survey, which is in its 23rd year and included responses from 205 investors with $878 billion in real estate holdings, shows that respondents continue to view real estate as the most attractive asset class on a risk-adjusted basis. Target allocations to real estate remain relatively high at 9.4 percent, with investor holdings on average 0.60 percent below their target allocation.