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H2 2021
Global Real Estate Report
March 9, 2022
Specter of inflation driving real estate out of pandemic funk
Real estate funds raised $152.7 billion in 2021, a year-over-year increase of 6%, as capital committed bounced back only modestly from the dip wrought by COVID-19.
Rising inflation may reshape the future of real estate funds, as the strategy is one of the asset classes expected to provide a hedge. Our H2 2021 Global Real Estate Report tracks the pandemic rebound and how the real estate investing landscape may change in an evolving market.
Key takeaways
Table of Contents
Real estate funds raised $152.7 billion in 2021, a year-over-year increase of 6%, as capital committed bounced back only modestly from the dip wrought by COVID-19.
Rising inflation may reshape the future of real estate funds, as the strategy is one of the asset classes expected to provide a hedge. Our H2 2021 Global Real Estate Report tracks the pandemic rebound and how the real estate investing landscape may change in an evolving market.
Key takeaways
- Allocations to real estate are likely to increase amid inflation, with signaled rate hikes both dictating which strategies benefit and potentially driving capital to lower-risk areas.
- Median and average real estate fund sizes set records in 2021, but funds over $5 billion, which dominate other strategies, remain rare.
- The pandemic has redirected capital into sectors including logistics, industrial and life sciences, at the expense of retail and hospitality investments.
- The share of funding going to emerging managers continues to fall, as LPs favor experienced managers and real estate fund management remains difficult to enter.
Table of Contents
| Key takeaways | 3 |
| Real estate fund types and definitions | 3 |
| Macro overview | 4 |
| Fundraising overview | 5 |
| Core and core plus | 10 |
| Value-add | 13 |
| Distressed and opportunistic | 15 |
| Debt | 17 |
| Public and private performance overview | 19 |