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Investors inject record levels of capital into real estate

Consistently high levels of capital raising activity across global regions

03 April, Venice – A record €161.7 billion of capital was raised for investment into real estate around the world in 2018, according to the Capital Raising Survey 2019, published by ANREV, INREV and NCREIF today.

Of the total raised, over half (€85.1 billion) has already been invested leaving around €76.6 billion yet to be deployed.  This surge in capital flow reinforces an ongoing trend for capital raising, which 71.9% of fund managers expect to see continue into the future.

The survey reveals that, globally, a minimum of €154.8 billion of the new capital was raised for investment into non-listed real estate vehicles – slightly ahead of the previous year’s tally of €152.3 billion.  Most – €69.4 billion (or 44.8%) – is headed for Europe; a third (or €51.3 billion) is destined for North America; and €22.5 billion is targeted at Asia Pacific.  The remainder will be divided between global strategies and South American strategies at €10.6 billion and €1.1 billion, respectively. This high level of interest in non-listed real estate is underlined by the rise in the number of these vehicles for which capital was sought – up from 895 in 2017 to 933 in 2018.  

There is some domestic bias, on a regional basis. European fund managers earmarked 81.4% of new equity raised for vehicles with a European strategy, 8.1% for global vehicles and 10.6% to be split between North America (7.9%) and Asia Pacific (2.7%).  Fund managers in Asia Pacific plan to deploy 74.9% of the capital they raised in their home region.  However, North American fund managers – some of the largest of which have a global reach with operations in all three key regions – will invest the least in their domestic market at 66.2% of new capital. 

In total, 45.3% of all capital raised for non-listed real estate vehicles was destined for funds; while separate accounts (invested in direct) attracted 21.4%.  Non-listed debt products seem to have regained some of their appeal, drawing 13.8% of capital – substantially more than the 8.1% raised the previous year.  Joint ventures and club deals combined, accounted for 9.7% of total capital raised. This spread reflects the ever-growing range of non-listed real estate investment products.

Pension funds and insurance companies remained the two dominant sources of capital in 2018.  However, while the contribution from pension funds accounted for the lion’s share of the total at 34.9%, insurance companies nearly doubled their commitments – up from 13.2% in 2017 to 24.5% in 2018.  Notably, insurance companies accounted for 69.5% of all capital raised for non-listed real estate debt products.   Sovereign wealth funds also increased their allocations accounting for 5.6% of the total equity raised, though still substantially down on the 10.8% reached in 2015 and 8.7% in 2016.

Henri Vuong, INREV’s Director of Research and Market Information, said: ‘This survey reaffirms evidence elsewhere that real estate is manifestly more than just ‘flavour of the month’.  The continued record high volumes of capital flow suggest that, despite the challenges of deployment and the approaching late cycle, global institutional investors retain a firm belief in the long-term income and portfolio diversification benefits of this asset class, in general, and non-listed, in particular.’

– Ends –

For further information, please contact: 
Johlyn da Prato, johlyn.da.prato@inrev.org, +31(0)621397456
Justin St Clair-Charles, inrevteam@firstlightpr.com | +44 (0) 7769 644 059
Jack Rodgers, inrevteam@firstlightpr.com | +44 (0) 7580 427 746

Notes to Editors

About the Capital Raising Survey 2019

The Capital Raising Survey 2019 records details of capital raising activity in the non-listed real estate industry during 2018.  It provides insights subdivided by region, vehicle type and investment strategy. The 2019 release includes data from 203 fund managers – up from 175 in 2018 and a record high number of responses.  Of these, 115 are domiciled in Europe, 46 in Asia Pacific and 42 in North America.

Launched in 2006, the Capital Raising Survey has been carried out on a global basis since 2015 with data collected jointly by ANREV, INREV and NCREIF.  All figures in the report are quoted as at end 2018, unless otherwise stated.


INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.7 trillion and INREV members deliver €385 billion of stimulus to the real economy of Europe.

INREV has 456 members which include 82 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.

The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.