In the 2018 institutional real estate allocations monitor by Hodes Weill Associates, target allocations to real estate in institutional portfolios continue climbing in 2018.
Rising from 8.9% of a weighted allocation in investors’ portfolio, the 2018 figure is now 10.4%, suggesting an increasing attractiveness of the real estate asset class to investors.
In the survey, 208 institutions from 209 countries representing US$11 trillion of assets are asked about their target and projected allocations.
The survey provides an estimation of the quantum and directional trend of investable capital.
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In the same vein as rising allocations to real estate, 92% of investors are actively investing in real estate, compared with 72% in 2014.
The average long-term target return for global institutional allocations to real estate remained flat from 2017 to 2018 at 8.2%.
Compared to previous years, endowments & foundations continue to have one of …