Working it out: One-size-fits-all investments no longer exist
Demand for real estate among institutional investors worldwide is still high and this will intensify in the future. Investment activities are mainly driven by the low yields and rates of return on alternative investments and by favourable financing possibilities. As this will not change much in the foreseeable future, many institutional investors are currently realigning their global investment strategies. Most have a need to increase the share of real estate investments in their overall portfolios in order to meet their return requirements.
This was highlighted in a report commissioned by PATRIZIA’s research department from a global financial services provider that showed the underallocation of real estate investments within portfolios, with institutional investors reportedly needing to increase real estate allocation on average by more than a quarter (from 7.2 percent to 9.1 percent of overall assets). At the same time, investors want to diversify these investments inter