European investors plan to boost their allocations to regional non-listed real estate debt products after a bumper year.
Europe accounted for a fifth of all capital raised for non-listed real estate debt products last year, according to trade body INREV, up from just 5% in 2019 and a five-year high.
INREV’s Investment Intentions Survey 2021 found that 22% of European investors now plan to increase allocations to European products over the next two years, up from 16% in 2020.
A shrinking proportion of Asia-Pacific and North American investors, on the other hand, plan to increase their allocations to European debt.
Iryna Pylypchuk, INREV’s director of research and market information, said the European non-listed real estate debt market “is finally taking off”.
She added: “There are many moving parts in terms of how non-traditional lenders develop their strategies and product offerings in this space, but over the coming years we expect European investors to continue increasing allocations to non-listed real estate debt, fuelling strong capital raising activity and bringing much-needed transparency and improved market coverage.”
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