Yet that shift to
increase real estate allocations will not happen overnight and will likely be a gradual process with allocations that will grow over the next several years.
More than half of the respondents with multi-asset portfolios said that they would
increase their real estate allocations in the next 12 months.
Investors who are looking to
increase their real estate allocation but don't want to buy individual holdings should consider purchasing a REIT ETF.
«Many of our clients are
increasing their real estate allocations,» says Maher.
Not exact matches
Even modest
increases in
allocations to commercial
real estate could translate to a big jump in dollars, given the fact that the HNWI market is experiencing steady growth.
The demand to
increase real estate investment is still healthy, although it does represent a slight dip compared to the 2016 survey, when 59 percent of respondents expected
allocations to rise and 32 percent predicted
allocations to remain steady.
She literally discussed and answered questions about all of the investing topics I have recently been thinking about — including weighing the pros and cons of placing all of your bond investments into tax - deferred accounts, why Vanguard decided to recently
increase their recommended stock
allocation to include 40 % international stocks, and how more investors using REITs (
real estate investment trust funds) to balanced their portfolios and mitigate risk.
Offers
increased asset
allocation choices including a REIT (
Real Estate Investment Trust) and natural resources ETF (exchange traded fund) as well as a single - stock diversification service so you can have
increased portfolio diversification.
Our
increased allocations to global equities, inflation - protection securities and simultaneous reduction of interest - rate - sensitive assets, such as
real estate investment trusts, support such an outcome.
Save as much as you can (more than the home owner) and
increase your asset
allocation in
real estate investments such as REITs.
I did not invest any more into this fund yet simply because of our current exposure to the residential
real estate market but plan on
increasing this
allocation gradually.
We also reduced our non-US equity
allocation when we reduced our overall equity
allocation (and
increased our
real estate exposure).
Strategies: Influence the
allocation of NAHS funding for region based on overcrowding / lack of infrastructure; lobby DoH for greater access to mainstream housing, support for ATSI housing; advocate
increased / equitable
allocations of community housing; work with Dept Fair Trading to eliminate discriminatory behaviour of
Real Estate / Property Managers.
«While we have seen rapidly rising Chinese global investment and oil - rich countries in the Middle East or Norway
increasing their
allocations to global
real estate, Canadian buyers continue to dominate foreign investment in the U.S. and should remain on the radar screens of American investors and owners of U.S.
real estate,» says Chris Ludeman, global president, CBRE Capital Markets.
«It's my view that pension funds will continue to
increase their commercial
real estate allocations, particularly when you have a low interest rate environment and low returns on alternative investments,» says Christopher R. Ludeman, president of capital markets with global
real estate services firm CBRE Group Inc. «There will be continued movement to expand their
real estate equities.
According to Preqin's June 2017 survey, 73 percent of survey respondents plan to maintain their current level of investment in
real estate funds or
increase their
allocations over the next 12 months.
According to exclusive research from NREI's 2017 HNWI Research Report, 55 percent of respondents expect HNWIs to
increase allocations to
real estate in 2018, while 36 percent expect
allocations to remain the same and only 9 percent anticipate a drop.
Even modest
increases in
allocations to commercial
real estate could translate to a big jump in dollars, given the fact that the HNWI market is experiencing steady growth.
The demand to
increase real estate investment is still healthy, although it does represent a slight dip compared to the 2016 survey, when 59 percent of respondents expected
allocations to rise and 32 percent predicted
allocations to remain steady.
As high - net - worth (HNW) investors and family offices look to
increase their portfolio
allocations in
real estate, the multifamily sector continues to offer attractive investment opportunities.
While some investors may take a wait - and - see approach to betting their money on U.S. commercial
real estate assets in the short term given the uncertainty surrounding U.S. economic policy under the new President Elect, «capital formation globally continues to grow and
increase allocations to
real estate,» according to Byron Carlock,
real estate practice leader with consulting firm PwC, who is currently in London for an investment conference.
Greg MacKinnon: We are certainly seeing institutions intending to
increase their
allocations to
real estate.
Maher says that about 25 % of the firm's three - dozen clients have
increased their overall
real estate allocations for 2003.
Pension funds have been following a clear path of
increasing allocations to
real estate over the past several years.
«Sovereign wealth funds have been a big part of the market over the past five years and [their role is]
increasing,» he said, citing Japan's Government Pension Investment Fund, which expressed interest in growing
real estate allocation.
We are conscious that it may take some time for those investors to
increase their asset
allocation to listed
real estate, but even small shifts in sentiment can go a long way.
«We have record - low vacancy rates, record - low unemployment,
increasing institutional
allocation to
real estate and supportive immigration that fuels population growth.»
Additional topics to be discussed may include geopolitical and macroeconomic concerns, interest & mortgage rate pressures, strong dollar, weak oil,
increasing institutional
allocations to
real estate, accumulation of dry powder, cap rate compression, the perceived late point in the cycle, and how all of the above will impact your strategy for the year ahead.
In the year ahead, Northwestern Mutual would like to
increase its commercial / multifamily
real estate allocations.
Subsequently, pension fund
allocations to
real estate have artificially
increased, often to a point beyond their original target percentage, says Dennis Yeskey, national director of
real estate capital markets for Deloitte & Touche.
Additionally,
increased allocations to
real estate and public REITs by pension funds put downward pressure on capitalization rates in 2014, according to Werner.
It surveyed more than 600 investors around the world and found that more than half intend to
increase their
allocation to
real estate in 2016.