Nonlisted real estate retains its appeal for investors globally, with another $160.2 billion raised this past year, according to the ANREV/INREV/NCREIF Capital Raising Survey 2018. The survey was conducted by the Asian Association for Investors in Non-listed Real Estate Vehicles, European Association for Investors in Non-listed Real Estate Vehicles and National Council of Real Estate Investment Fiduciaries. Notably, the Asia Pacific region saw a record $26.2 billion raised, 70.9 percent of which was for nonlisted real estate funds.

Although diversification is often the main reason for institutional investors to invest in Asia Pacific real estate, they also are showing an increased propensity to chase riskier strategies. With returns on nonlisted property funds at their highest level since the global financial crisis, investors are increasingly favoring value-added strategies as the most attractive risk-and-return prospect for the year.

This has led to a surge