There is a growing global war chest of capital for real estate, with institutional investors looking to increase their real estate allocations and new sources of capital emerging, according to Colliers International’s latest research. Rising allocations to real estate from global institutions reached at least $840 billion in 2018, adding to the $340 billion in closed-end funds waiting to be deployed to real estate in 2019. The growing influence of sovereign and family wealth would double this allocation, and this only represents a 10.4% allocation to real estate. As allocations continue to rise alongside levels on wealth, new capital looking at real estate could hit $2.5 trillion by 2020.
