Investors set to increase allocations to real estate in 2018

According to a joint survey report by the Asian Association of Investors in Non-Listed Real Estate Vehicles, and the European Association for Investors in Non-Listed Real Estate Vehicles (INREV), and the Pension Real Estate Association, 56% of global investors plan to increase their exposure to real estate in the next 24 months. 17.1% of the total amount planned to be invested will come from Asia-Pacific investors.

Australia appears to be the favoured destination among investors, with 76% of respondents viewing Sydney as their top pick within the region. It is closely followed by Melbourne (65.8%), and China Tier 1 cities and Tokyo tied for third (55.3%). They also rank Sydney and Melbourne’s office sectors and industrial and logistics sectors as the top four preferred sector combinations in the region, the report says.

It cautioned that while interest in real estate investment is booming, 60% of Asia-Pacific investors describe the availability of suitable products as a barrier to investing. While 68% of North American respondents viewed currency risk exposure as the main obstacle.

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