Source: IPE Real Assets —
Unlike their North American and Asia-Pacific counterparts, European institutional investors on average plan to decrease their weightings to real estate, having overshot their target allocations.
According to the latest annual investment intentions survey, conducted jointly by regional real estate investor associations INREV, ANREV and PREA, European investors hold 10.8% of their assets in real estate, just above their average target allocation of 10.5%.
Globally, investors are on average below their target allocations, with a 10.2% exposure to real estate versus an average target of 10.4%.
In contrast to European investors, Asia-Pacific institutions are substantially under-allocated to real estate, with an average exposure of 6.3%, two percentage points below their target of 8.3%.
US investors, which have the highest average exposure to real estate at 12%, are close to their target allocations of 12.7%, but maintain a 70bps cushion.
More than two thirds (37%) of European investors plan to decrease their allocations and only 16% plan to increase them.
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