The average current allocation to real estate globally stands at 12.4%, marginally below the average target of 12.5%. European investors, whose allocations were on target last year, now report a modest 20 bps overallocation above their average target of 13.9%. Asian Pacific and North American investors remain underallocated by 200 bps and 40 bps on average, respectively.
Key highlights:
- Access routes to European real estate: Real estate debt funds are the most favoured investment vehicle, followed by joint ventures and club deals. Interest in non-listed real estate funds has increased significantly, rising from 8% to 17% on a net basis.
- Top European investment destinations: The UK and Germany retain their positions as the top two destinations. Spain ranks third, Denmark moves into fourth place, and Ireland enters the top ten for the first time in seventh place.
- Sectors in focus: Residential remains the most preferred sector in Europe, supported by demographic trends and persistent supply constraints. Industrial/logistics continues to rank among the most preferred sectors, with 67% of respondents indicating a preference, despite a slight decline in interest year-on-year. Interest in offices and development increases, with both sectors now ranking joint third in overall preference with 56%.
- Risk appetite: European investors continue to favour more conservative strategies, with a further decline in appetite for high-risk allocations. In contrast, Asia Pacific and North American investors show a stronger preference for higher risk strategies—particularly value added—when investing in Europe.
- Net zero targets: Sustainability remains embedded in investment decision-making. Nearly 60% of global investors report having set net zero targets, although most continue to favour post-2040 timeframes.
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Investment Intentions Survey 2026
Published on 14 Jan 2026