INREV’s Capital Raising Survey, which finds that capital raising activity in 2023 was the lowest volume of capital raised since 2015, will make the industry wonder whether this aspect of real estate will recover this year.
Fund managers raised a minimum of just €117 bn for non-listed real estate globally last year.
European investors returned as the leading source of capital for real estate globally, accounting for 38% of the overall equity raised.
The association also noted the balance of power shifted among investors as sovereign wealth funds and government institutions accounted for almost 20% of total capital raised.
At 39%, non-listed funds attracted the lion’s share of capital raised globally in 2023, followed by non-listed debt products with 24%.
The figures have been produced as INREV holds its annual conference this week in Berlin.
European investors continued to dominate their domestic region contributing 79% of the capital raised for European strategies, followed by investors from Asia Pacific at 14% – down from a high of 21% in 2022. Contributions to European strategies from North American investors fell to 6% in 2023.
Focusing on global strategies only, investors from the Asia Pacific region emerged as the leading source of capital representing 43% of the total. European investors occupied the second slot at 31%, with investors from North America contributing 26% – a 32% drop compared with 2022.
