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BlackRock report shows appetite for real estate still rising
Unusual times call for adaptive measures. In response to incredibly low interest rates, slow economic growth and continuing economic uncertainty since the global financial crisis, institutional investors have had to rethink how they construct their portfolios — and which bricks will be best to build around.
Nearly one-third of institutional investors have increased their allocation to real estate in the past three years, and almost half plan to increase their allocation in the next 18 months, according to the latest survey and report from BlackRock, The Ascent of Real Assets.
But how much those allocations increase will vary widely depending on where those investors reside. While 35–40 percent of respondents from every region plan to increase their real estate allocations by 1–9 percent, only 1 percent of North American respondents plan to increase their real estate allocation by 10 percent or more, compared with 13 percent of EMEA respondents and 20 per