ASIA - Investors are increasing their allocation to Asian non-listed real estate as appetite for joint ventures doubles, according to an ANREV survey.
The poll of 200 investors - 62% of them fund managers - found that 82% expected to increase their allocations to Asian non-listed funds, compared with 40% in European funds.
No investors expected to decrease their allocation to Asian funds, in contrast to 20% reporting an intention to decrease their exposure to European funds.
Data on joint ventures showed a stronger example of a similar trend.
Only 40% of investors polled by ANREV expressed an interest in European joint ventures, down from 67% in 2011.
By contrast, interest in Asian joint ventures grew from 33% last year to 67% in 2012.
However, the report's authors acknowledged the potential bias in its sample, with overrepresented large investors likely to have better access to joint-venture opportunities.
"It might be that European investors realised the challenges of the product this year after a high initial level of interest, and there has now been a subsequent drop in expected increases in allocations," the report said.
"It will be interesting to see if there will be a similar drop in interest for joint ventures in Asia in next year's survey."
ANREV's second annual study indicates a divergence in preferred style by market, with emerging Asian market investors opting for opportunity funds - especially in China - and those in Europe and mature Asian markets opting for core.
Lack of transparency and market information remain concerns for investors in Asian real estate - in contrast to market conditions and access to expert management in Europe.
Yet 44% of investors in Asian property said the ability of fund managers to raise capital was an obstacle to investment, compared with 63% of investors in European funds.
