Real estate allocations align closer to targets globally according to the ANREV/INREV/PREA Investment Intentions Survey 2025. The current average weighted by AUM allocation to real estate globally shows a small underallocation at 8.7%, slightly below the average target allocation of 9.0%. European investors now match their average target of 9.4%, after being overallocated for the past two years. North American investors maintain the highest current allocation at 10.4%, despite being approximately 80 basis points below target.
European highlights:
- Appetite for high-risk strategies remains strong in Europe, but core strategies regain traction.
- Spain debuts into the top three most preferred European investment destinations, as France falls out for the first time in the history of the survey. UK and Germany continue in the top two spots.
- Residential and industrial/logistics dominate sector preferences in Europe. Student accommodation emerges as the third top preferred sector in Europe with a strong 67% preference.
- Included in the survey for the very first time this year, operating platforms rank as the top preferred access route in Europe in 2025, closely followed by debt funds.
- Sustainability remains a priority, but investors are divided on timeframes for net zero targets with most aiming for post-2040 timelines.
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