Holding steady: Stable real estate allocations in 2023 despite macro headwinds
As investors move on from the pandemic, new challenges await as global markets tread water in the Year of the Water Rabbit, with a new period of uncertainty influencing investors’ investment decision making and a myriad of macroeconomic headwinds affecting investors globally, including those in Asia Pacific. The Russia-Ukraine war and the consequent energy crisis has led to high inflation, coupled with the untimely sharp rise in interest rate trajectory in a double whammy to global markets. Nevertheless, there may still be relative stability in real estate allocations amid the current market uncertainty. The results of the recent ANREV/INREV/PREA Investment Intentions Survey 2023 reveal that institutional investors plan to maintain their allocations for real estate globally, suggesting institutional capital looks set to maintain stickiness to the asset class during the coming year despite the ongoing macroeconomic headwinds.
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