Strong appetite for Asia-Pacific real estate – The Asset

Institutional investors plan to stick to their investment plans for non-listed real estate in Asia-Pacific in 2021, a new survey finds. Despite the market turbulence last year, 77% of investors said the coronavirus pandemic has not changed their investment plans in the region. 

Across all investment destinations globally, more investors reported plans to increase allocations to real estate than to reduce them because of Covid-19, according to the annual Investment Intentions Survey published by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV), the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) and the Pension Real Estate Association (PREA) in the United States.

This was particularly the case with Asia-Pacific investments as 22% of the respondents said the crisis has prompted them to increase their planned investments in the region. This compares with 16% who will increase investments for the US and 13% for Europe.

The survey also reveals that 72% of investors expect their allocation to Asia-Pacific to increase over the next two years, far higher than the proportion expecting an increase in allocation to the other regions.

This is higher than the number of Asia-Pacific investors expecting to increase allocations to their home region (59%). In fact, a larger proportion of investors from Asia-Pacific expect their US allocation to increase than expect their home region allocation to increase.

Investors based in Asia-Pacific had the lowest average actual allocations at 8.0% (compared with the 9.3% average globally) and the widest spread to their average target allocations of 9.7%
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Author: Global Real Estate