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 a 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, it is not the same old bag of benefits drawing investors to the asset class. Macroeconomic conditions and increased return were the biggest motivations among survey respondents for increasing real estate allocations, with more than 60 percent of respondents indicating each factor, while the more traditional draws to real estate — portfolio diversity and inflation protectio