Confidence among institutional real estate investors has reached its strongest level since 2019, according to the latest Investment Intentions Survey carried out by INREV, ANREV and PREA. The findings indicate a growing belief that the worst of the market correction may now be behind, with many investors preparing to increase allocations as conditions stabilise across key regions.
Nearly four in ten respondents globally intend to raise their real estate allocations over the next two years, while fewer than three in ten expect to decrease exposure.
Overall, current allocations sit just below target levels, with a global average of 12.4 per cent against a target of 12.5%. In Europe, investors are slightly overweight, while allocations in North America and Asia Pacific remain under target, pointing to potential for further capital deployment in those regions.
The UK and Germany remain the top destinations for cross-border capital, supported by their liquidity, transparency and scale. Spain continues to attract interest, particularly in the residential segment, while Denmark’s rise in investor preference highlights demand for stable, well-governed markets with strong ESG credentials. Seven of the top ten most sought-after investment markets are now located in Europe.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
