Real estate continues to hold its own in private capital arena
Research carried out by Preqin has found that the performance of real estate assets continues to keep investors more than satisfied.
The company has spoken to 550 institutional investors, 88 percent of whom feel that their real estate investments met or exceeded their expectations in 2017. 91 percent felt the same about their portfolios over the past three years. The private equity real estate market has seen several years of strong performance, and funds of the most recent vintages have outperformed all other private capital asset classes, according to Preqin. For the vintage years of 2013 and 2014, real estate funds posted higher median net IRRs than all other private capital asset classes, returning 14.3 percent and 12.2 percent, respectively.
And despite concerns that the market has now reached its peak, investors appear to be happy to play the waiting game, with 32 percent looking to increase their property investments and 57 percent expecting to maintain them in