Suggested Versus Actual Institutional Allocations to Real Estate in Europe: A Matter of Size?
2005 (English)In: The Journal of Alternative Investments, ISSN 1520-3255, E-ISSN 2168-8435, Vol. 8, no 2, 62-70 p.Article in journal (Refereed) Published
The allocation to real estate by institutional investors has increased in recent years and as a result the gap between suggested and actual allocations has narrowed. The increased inflow of capital to the real estate market is suggested to be a function of two factors: An increased focus on absolute return target investments among institutional investors and an increased target allocation to real estate. This article argues that the increased target allocation is made possible mainly by the development of new investment vehicles, in particular private real estate funds, the growing integration of economic regions, and other factors such as the development of investment benchmarks. The flows needed for the actual allocation by European institutional investors to match the suggested allocation requires that at least 31% of the real estate equity universe be held by owner occupiers. The authors estimate that seven years would be needed to reach the target allocation, but it is unlikely that sufficient investment opportunities will arise unless the willingness of owner-occupiers to outsource their real estate assets increases.
Place, publisher, year, edition, pages
2005. Vol. 8, no 2, 62-70 p.
Allokering till fastigheter, institutionella förändringar, investeringsslag
Economics and Business
Research subject Real Estate and Construction Management
IdentifiersURN: urn:nbn:se:kth:diva-196527DOI: 10.3905/jai.2005.591578OAI: oai:DiVA.org:kth-196527DiVA: diva2:1046769
QC 201611152016-11-152016-11-152016-11-15Bibliographically approved