Despite being in the later stage of the cycle, investors still seem bullish on real estate, as proven by the record $193.7 billion capital raised for real estate in 2018, according to the ANREV/INREV/NCREIF Capital Raising Survey 2019.

It appears, however, high return expectations (compared with other asset classes) are not the only reason investors are still increasing allocations to real estate. Vis-à-vis bonds, real estate returns traditionally seem relatively more attractive in low interest-rate environments, but figures from 2018 showed these returns slowed. Rather than reducing allocations, however, the recent ANREV/INREV/PREA Investment Intentions Survey 2019 highlighted real estate has remained a stable part of investors’ portfolios, with allocations averaging 10 percent — much closer to target allocations than in previous years, though this varies across investors by domicile and size. This also provides a clear sign that investors see real est