Investors in non-listed real estate funds are set to allocate increasing amounts of their resources to Asia at the expense of vehicles based in Europe, according to new research from INREV, the European association for investors in non-listed real estate funds.
Investors in non-listed real estate funds are set to allocate increasing amounts of their resources to Asia at the expense of vehicles based in Europe, according to new research from INREV, the European association for investors in non-listed real estate funds.
The INREV report suggests that both the European and Asian real estate markets will continue to grow over the course of 2012 but at markedly different rates. More than 80% of the fund managers who invest in Asia expressed an intention to increase their allocations to non-listed funds. The rate of increase expected in European investment vehicles was substantially lower at 40%.
Asia remains an appealing market for non-listed funds, according to INREV, as the mix of 'developed' and 'emerging' markets in the region gives investors a good spread of options to balance their ambitions. China is the favoured location for riskier opportunity funds, followed closely by India, Indonesia, Malaysia and Thailand. In contrast, investors allocating capital to Europe expressed a strong preference for core product in low-risk regions, led by Germany.
The survey also pinpointed several obstacles to investing in both regions. Depressed market conditions in Europe and a lack of suitable product were cited as obstacles in Europe. A lack of transparency was cited as the major barrier for investors in Asia.
The research paper was carried out by INREV and its sister organisation ANREV, the Asian association for investors in non-listed real estate funds.
