Our business follows the capital (in good times and bad). 5 observations on the state of LP real estate equity…
1. First-ever decline.
For the first time on record, the top 100 global investors cut their aggregate allocations to private real estate. Total capital shrank 3.6% in 2024.
2. Growth collapse.
What was 13.5% growth in 2022 slowed to just 2.8% in 2024 before turning negative. Rising rates hit valuations, fundraising, and deal flow.
3. Wide pain, uneven impact.
European, Canadian, and Australian investors took the hardest hit. Asia-Pacific bucked the trend, posting a 0.7% gain in allocations.
4. More losers than winners.
59 investors saw their portfolios shrink, up sharply from 48 in 2023, 35 in 2022, and 18 in 2021.
5. Allocations rolled back.
Average portfolio allocation to real estate fell from 11.5% in 2023 to 9.3% in 2025. That’s a full two percentage points erased in just two years.
Ps - we invest a lot of time, money, and energy trying to find the best and most actionable real estate information. And in a world of abundant information, it’s increasingly difficult to spot insight. …which is why we share this summary from PERE’s recent release on the largest 100 real estate LPs. This isn’t a coordinated or paid endorsement (PERE doesn’t know we’re saying this), but we find PERE to be a refreshingly consistent source of real estate insight.
To Jonathan Brasse and the rest of the PERE team: thanks for putting as much as you do into your content engine.
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