Institutional investors plan to invest at least EUR68.2 billion in global real estate this year, according to the 2022 Investment Intentions Survey by ANREV, INREV and PREA.
The majority of this new capital comes from European investors (52 per cent), whilst their counterparts from North America and Asia Pacific account for 26 per cent and 21 per cent respectively. Funds of funds expect to commit a further EUR8.5 billion, taking the total to at least EUR76.7 billion. Of this total, EUR31.5 billion is expected to be invested in European real estate over the next two years.
At a global level, 62 per cent of the surveyed investors said the Covid-19 pandemic would not impact their investment plans for 2022. With a gap of 120 basis points between current (8.9 per cent) and target (10.1 per cent) allocations to real estate, institutional capital looks set to continue to flow into the asset class during the coming year and 61 per cent of all surveyed investors expect their allocation to real estate to increase over the next two years.
In 2022, 41 per cent of planned capital deployments is targeting Europe, 39 per cent North America (the United States only) and 19 per cent Asia Pacific. Of the total expected volume of institutional investments this year, 41 per cent is earmarked for non-listed real estate funds and 30 per cent is planned for other non-listed real estate vehicles.
