How institutional investors position themselves in real estate and alternatives | Markets | 05/20/2022

A current study commissioned by artis Institutional Capital Management and Telos on the topic “Institutional Investors’ Preferences in Real Estate and Alternative Investments” highlights some interesting things. For example, it shows that investment effect is rising.

The Survey of Institutional Investors’ Preferences in Real Estate and Alternative Investments was completed a few weeks ago. 64 German institutional investors took part in the study, and together they are responsible for an investment volume of nearly €1.2 trillion.

The study examined current trends in the real estate sector and alternative investment, ie topics such as private debt, private equity, renewable energies, and investments in classic infrastructure. Another focus of this study was on opinion polls on topics such as sustainability, ESG and impact investing (Article 9 of the EU Disclosure Regulation).

What conclusions can be drawn from this for the future
Real estate investments are still in demand, but a certain amount of saturation can be observed in investment shares, and new types of use are sought only to a limited extent.
Private debt and equity in infrastructure are likely to become the new stars in the coming years. Huge increases are planned here by institutional investors.
Energy issues in particular are preferred in infrastructure and private debt. However, for initial investments in the private debt asset class, real estate issues are the focus of institutional investors’ attention.

The issue of sustainability continued to gain importance
Both are triggered externally by regulatory requirements, but also by institutional investors’ internal perception and environmental, social and governance (ESG) considerations when investing in alternative assets. The topic of influencer investing is also attracting increased interest from investors, as shown in the following chart.

What is the sustainability strategy for institutional investors based on?
The effect of investing on the rise

Source: artis ICM, Telos

(kilobytes)