Global institutional real estate allocations pass 10% for first time

Global institutional investors’ average target allocation to real estate surpassed the 10% threshold for the first time in 2017, according to Hodes Weill & Associates and Cornell University’s fifth annual Institutional Real Estate Allocations Monitor.

The Allocations Monitor shows that the average target real estate allocation increased to 10.1% in 2017, up from 9.9% in 2016 and 8.9% in 2013 - the year in which the survey was first conducted.

Over the past five years, institutional portfolios have increased their exposure to real estate from 8.5% to 9.1% invested. This implies that real estate portfolios have increased by approximately $0.5trn in total value, through a combination of capital appreciation and new investments.

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