INREV’s Investor Universe Comparison Study reveals that investors in key European markets are expected to increase allocations to non-listed real estate funds by 39.2% over the next three years.
Property allocations will grow on average by 27% across seven European markets – Germany, UK, France, Sweden, Finland, the Netherlands, and Italy.
German investors will lead this expansion with allocations expected to increase by 43.9%, followed by France at 37.7%, while the UK and Sweden also show strong increases in appetite for real estate, said the non-listed funds body.
Non-listed real estate funds are the second-most preferred form of real estate investment among the seven countries.
Casper Hesp, director of research and market information at INREV, said: “The outlook for non-listed real estate funds in Europe is positive. Many of the key European markets we looked at during our Investor Universe series revealed an interest in non-domestic real estate investment, and non-listed property funds are still the best option for international diversification.
“Italy has the highest average allocation to non-listed real estate funds – 34.2% of total investment in real estate – but it is still primarily a domestic market, so it will be interesting to see how it will develop.”
“Although investors have shared concerns regarding the lack of control around non-listed real estate funds, the increased activity and interest across these key markets will make it easier for investors to access expert and specialist management in order to break into new markets and sectors,” said Hesp.
