Investment Intentions Survey

Investors position portfolios for recovery
The current global average allocation to real estate stands at 12.4%, marginally below the average target of 12.5%. European investors, whose allocations were on target last year, now report a modest 20 bps overallocation above their average target of 13.9%. Asian Pacific and North American investors remain underallocated by 200 bps and 40 bps on average, respectively.

• Real estate debt funds are the most favoured investment vehicle, followed by joint ventures and club deals. Interest in non-listed real estate funds has increased from 8% to 17% on a net basis.
• The UK and Germany remain the top two destinations. Spain ranks third, Denmark is fourth, and Ireland enters the top ten for the first time in seventh place.
• Residential remains the most preferred sector in Europe, supported by demographic trends and persistent supply constraints. Industrial/logistics continues to rank among the most preferred sectors, with 67% of respondents indicating a preference. Interest in offices and development increases, with both sectors now ranking joint third in overall preference with 56%.
• European investors continue to favour more conservative strategies. In contrast, Asia Pacific and North American investors show a stronger preference for higher risk strategies—particularly value added—when investing in Europe.
• Nearly 60% of global investors report having set net zero targets, although most continue to favour post-2040 timeframes.