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26. Januar 2012 
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Non-listed real estate investors head for relative safety of northern European countries
Paradoxically, some investors appear to be taking a more bullish approach demonstrating a keenness to capitalise on current market conditions through the relatively more risky opportunity and value-added funds. Interest in opportunity funds has increased to 10%, up from 3% in 2010. Similarly, nearly half of investors anticipated increasing their allocation to value-added funds over the next two years, despite only 22% of them highlighting these funds as their preferred style.
Beyond Europe
Almost 60% of investors said they were likely to increase their allocations to non-listed real estate funds outside Europe.
Asia appears to be a particularly attractive destination, with more than 40% of investors keen to increase their allocations to this region. Enthusiasm for Asia is even greater among fund of funds managers, 60% of whom anticipate raising their allocations to this region.
Real Estate allocations
Overall investor demand for real estate as an asset class is on the rise, albeit from a relatively low base.
There is expected to be a corresponding net increase in allocations to non-listed real estate funds over the next two years but slightly lower than last year. Forty two per cent of investors indicated an intention to up-weight their allocations, but this is balanced by around 20% of investors expressing a preference to decrease their allocations to non-listed real estate funds.
Despite a drop in interest in joint ventures this year, this type of real estate product is still most favoured by investors with 39% expecting to increase their allocations. Only 3% of investors say they will decrease allocations to joint ventures.
“This Survey reflects what our members believe is happening in the market. While it may seem obvious that investor sentiment is predominantly one of risk-aversion, the statistics themselves act as a useful market indicator for members. It will be interesting to see the degree to which these intentions are acted upon in the months ahead,” concluded Matthias Thomas, CEO INREV.
Beyond Europe
Almost 60% of investors said they were likely to increase their allocations to non-listed real estate funds outside Europe.
Asia appears to be a particularly attractive destination, with more than 40% of investors keen to increase their allocations to this region. Enthusiasm for Asia is even greater among fund of funds managers, 60% of whom anticipate raising their allocations to this region.
Real Estate allocations
Overall investor demand for real estate as an asset class is on the rise, albeit from a relatively low base.
There is expected to be a corresponding net increase in allocations to non-listed real estate funds over the next two years but slightly lower than last year. Forty two per cent of investors indicated an intention to up-weight their allocations, but this is balanced by around 20% of investors expressing a preference to decrease their allocations to non-listed real estate funds.
Despite a drop in interest in joint ventures this year, this type of real estate product is still most favoured by investors with 39% expecting to increase their allocations. Only 3% of investors say they will decrease allocations to joint ventures.
“This Survey reflects what our members believe is happening in the market. While it may seem obvious that investor sentiment is predominantly one of risk-aversion, the statistics themselves act as a useful market indicator for members. It will be interesting to see the degree to which these intentions are acted upon in the months ahead,” concluded Matthias Thomas, CEO INREV.
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