Target real estate allocations drop for third year running
Target real estate allocations across Europe, Asia Pacific and North America have decreased for the third year running among investors.
According to the 2024 Investment Intentions Survey produced by ANREV, INREV and PREA, the current average allocation to real estate globally is 10.6 percent, but the average target allocation is 10.4 percent. European investors are the most bearish on expected allocations, with a substantial 43 percent expecting a decrease in allocations — and only 16 percent expecting an increase.
In terms of strategies, over three-quarters (78 percent) of investors who are looking to deploy capital in Europe in 2024 are seeking higher-risk strategies, with the majority (55 percent) preferring value-added strategies. In contrast, only 21 percent of investors chose core as a preferred strategy.
The United Kingdom has regained its position as Europe’s preferred investment destination, according to the survey, rising from being first