April 13, 2018
Research published by INREV, ANREV and NCREIF reveals that 2017 reached a remarkable total of €152.3 billion in new capital raised globally by real estate investment managers, representing a 25% increase from 2016. The “2018 Capital Raising Survey” reflected clear investor confidence in the asset class, with equity being raised for 895 vehicles, up from 733 the previous year, and gains across all regions.
INREV’s Lonneke Löwik says, “By any standards, a 25% uplift is very impressive. The survey tells a positive story about the continuing appeal of real estate for an increasingly broad spread of investors. And the seemingly greater diversity of capital sources will no doubt be reassuring in terms of protecting the industry against any future systemic risk.”
Vehicles with a European strategy again led the way, with €67.2 billion in capital raised, an increase from €56.6 billion in 2016. Of this total, European non-listed real estate funds enjoyed a record year, accounting for €35.1 billion.
However, big gains were made by vehicles with a global strategy, which made up more than 10.4% of total capital, the equivalent of €15.8 billion. This was most strikingly the case in North America, where over half of all capital is intended to be deployed outside the home region.
Overall, North American vehicles gained significant ground this year, moving from €31.6 billion in 2016 to €43.9 billion, and vehicles in the Asia Pacific region increased the volume of capital raised from €21.7 billion to €24.9 billion.
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