Asia Pacific real estate investment set to rise in 2020: ANREV

Institutional investors are planning to invest heavily into Asia Pacific real estate this year, as many continue to build or further diversify their portfolios, according to a new survey.

The Investment Intentions Survey 2020, published by ANREV, INREV and PREA, found that institutional investors are expected to deploy 31.9% of total real estate allocations to Asia Pacific this year, up from 19.6% in 2019.

Globally, institutional investors expect to invest US$101.3bn into real estate in 2020.

Investors from Asia Pacific will contribute the lion’s share of local investment though, with European and North American investors looking to deploy just 21.1% and 14.2%, respectively, of their capital into the region.

That said, the majority of investors surveyed from all three regions expect to increase their investment in the region over the next two years.

Investors continue to favour investing through private funds, with almost 60% of investors intending to up their allocations through non-listed funds.

“Despite slowing returns, real estate is set to continue to attract new capital in 2020, especially in Asia Pacific where a lot of investors are still building their portfolios and looking to achieve further diversification,” said Amélie Delaunay, director of research and professional standards at ANREV.

“With more fierce competition for core assets in the region, investors are moving up the risk curve to find new products.”

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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.