Investors are boosting their real estate allocations – as they should
PERE’s latest investor report prompts the notion that more investors should be dialing up their exposure to the asset class while the market resets.
Expert analysis by Christie Ou
PERE’s H1 2023 Investor Report reveals average real estate allocations increased for all institutional investor types: foundations and endowments, private pension funds, public pension funds, insurance companies and sovereign wealth funds.
Such a universal climb for average allocations has not occurred across all investor categories in the last five years. Sovereign wealth funds were one investor type, for example, that saw declining allocations to real estate from H1 2019 to H1 2022, for instance, the research demonstrates.
To what degree the denominator impact is behind this wholesale average increase would be interesting to understand. Further, it would not be hard to understand why investors might...