According to the results of the ANREV/INREV/PREA Investment Intentions Survey 2024, the current average global real estate allocation weighted by AUM stands at 10.6%, slightly above the average target allocation of 10.4%. This shows a small overallocation to the asset class worldwide. This overallocation is mainly driven by European investors, with a gap between the average target and current allocations of more than 65 basis points.
Investors from across the globe have shifted their risk appetite towards higher-risk strategies when looking to invest in Europe in 2024. More than 75% of the respondents expect to invest in value added or opportunistic strategies. This change in trend is led by Asian Pacific investors, with none among them expecting to invest in core European strategies. Even European investors show a preference towards non-core strategies – rising from 43% in 2023 to 64% in 2024.
- The denominator still impacting real estate allocations globally
- A sharp shift towards higher-risk strategies when investing in Europe
- The UK regains the top spot as a preferred investment destination
- Tailwind sectors will capture investor preferences in 2024. Residential in first place, closely followed by industrial/logistics
- Non-listed debt remains the preferred access route into European real estate.
Download the full report, snapshot, infographic and chartbook on the dedicated page below.