RESEARCH
GLOBAL institutional investors will continue to target Australian real estate in 2024 with a focus on Sydney and Melbourne residential – looking to capitalise on the population growth and...
The joint report released by ANREV, INREV and PREA reveals that overall, institutional investors’ allocations for real estate remain stable globally, according to...
According to the 2024 Investment Intentions Survey there’s a narrow gap of just 20 bps between current (10.6%) and target (10.4%) allocations to real estate...
“Approximately half (45%) of the institutional investors expect their allocation to real estate to remain unchanged over the next two years, with 25% expecting their allocation to...
The report says this reveals relative stability in real estate allocations with real estate allocation headroom from Asia Pacific investors...
“Asia Pacific investors are the only investors having significant real estate allocation headroom, with an average of 7.1% of investors’ portfolios allocated into real estate...
Moving into 2024, the ANREV, INREV and PREA report states that diversification of the overall portfolio is ranked as the most important attraction to real estate as...
“Nevertheless, the current macroeconomic environment is indicated to play a key role on real estate investment plans going forward. Across all investor domiciles, interest rates and...
“A majority of investors (79%) are now considering the ESG characteristics of the fund before investing in non-listed real estate funds.”...
ANREV, INREV and PREA also found that for Asia Pacific based respondents, most indicated both DEI programmes and sustainable investments were important considerations...
“Looking at the net zero commitments of the investors, globally most investors (59%) have made a commitment to reaching net zero. However, in most cases the target date...
“The shift in investors’ appetite for risk is seen across all investor domiciles, with 63% of investors preferring value added style for investment in Asia Pacific in 2024...
“In this year’s survey, Asia Pacific investors’ have strongly indicated their preference for higher risk styles. Just over three quarters (78%) of Asia Pacific investors...
The survey found Japan will be the flavour of 2024 with Tokyo and Osaka closely followed by Sydney and Melbourne being targeted for investment...
The top three positions for preferred city / sector combination in 2024 investment are dominated by the highly institutional markets in Australia and Japan...
Sydney industrial / logistics, and Melbourne industrial / logistics, Melbourne residential, and Tokyo residential are all tied as second place at 56%. Seoul industrial / logistics is...
Amélie Delaunay, ANREV’s Director of Research & Professional Standards, concluded that the 2024 Investment Intentions Survey is reflecting institutional investor’s penchant for...
“Notably, institutional investors are shifting their investment preference towards value added style in Asia Pacific while it is unsurprising to observe the Japan market being...