Global private real estate fundraising declined by 48.1% year-on-year to $25.94 bn in Q1 2023, amid an intensification and deepening of near-term investor caution, according to the latest research from Realfin.
The firm's State of the Market global real estate Q1 2023 review found that investors were still putting faith in real estate, although the dynamics were shifting.
The report noted that despite an abundance of uncertainty and risk, investors seeking to increase or maintain allocations to real estate still significantly outnumbered those looking to retreat.
Realfin saw what it described as 'an unusual' 62.4% quarter-on-quarter increase in the number of mandates, requests for proposals and intentions on the RealfinX platform in Q1 2023.
According to the firm, these are being driven by proactive demand for debt, opportunistic and value-add strategies which look set to ramp up over the next six to nine months.
Conversely, investors - a significant minority of whom are over-allocated as a result of the denominator effect - are reluctant to invest in the immediate-term and more selective in commitments when they do, the research concluded.
