Institutional investors continue to view the United States as a preferred destination relative to Europe for real estate investment across property types, led by multifamily and industrial, according to the AFIRE International Investor Survey: Q1 2023 Pulse Report, which was conducted in December 2022 and January 2023 with AFIRE’s nearly 175 member organisations from 25 countries with approximately US$3 trillion in assets under management.

“While continued rising interest rates and the future of office are identified as areas of concern at this time, investors’ long-term horizon enables them to balance these against opportunities, in particular the relative strength of the US real estate market as a preferred global destination for investment capital,” says Gunnar Branson, CEO of AFIRE.

Amidst this more cautious context, four in 10 investors forecast a market decline in US real estate allocation for 2023, rising to more than half of respondents holding