Key Takeaways
- • Institutional investors raised their target real estate allocations to 9.7 percent for 2021, up slightly, according to the 25th annual Institutional Investors Real Estate Trends report.
- • Despite pandemic disruption to office and retail assets, investors maintained their commitment to the asset class.
- • Real estate is cited as delivering current income in a low-interest-rate environment, relatively attractive total returns, and portfolio diversification benefits.
- • The report was conducted by Institutional Real Estate, Inc. and Kingsley, A Grace Hill Co.
Summary
The 25th annual Institutional Investors Real Estate Trends report, conducted by Institutional Real Estate, Inc. and Kingsley, A Grace Hill Co., finds that institutional investors maintained their commitment to real estate despite the pandemic's effects on property markets. The pandemic significantly affected several sectors, particularly office and retail assets, but did not alter investors' long-term view of the asset class, according to the report.
Investors' target allocations to real estate rise slightly to 9.7 percent in 2021. The report characterizes real estate as playing a critical role in institutional portfolios, providing current income in an era of low interest rates, relatively attractive total returns, and unique diversification benefits.
The publisher's summary is limited to the report's headline findings, and the source material available for this summary does not include detailed sector-by-sector breakdowns, regional data, or methodology beyond the sponsoring organizations. Readers seeking granular allocation shifts or sector performance should consult the full report.
Investors' target allocations to real estate rise slightly to 9.7 percent in 2021. The report characterizes real estate as playing a critical role in institutional portfolios, providing current income in an era of low interest rates, relatively attractive total returns, and unique diversification benefits.
The publisher's summary is limited to the report's headline findings, and the source material available for this summary does not include detailed sector-by-sector breakdowns, regional data, or methodology beyond the sponsoring organizations. Readers seeking granular allocation shifts or sector performance should consult the full report.
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