Global Real Estate Capital Raising Down More Than Half From 2022 Peak: ANREV

Fund managers raised $123 billion in new capital for investment in non-listed real estate in 2024, marking a 5 percent drop from the prior year and a decline of more than half from the 2022 peak, according to data compiled by non-profits serving the property investor community.

Despite slower fundraising, managers were more successful in deploying their newly raised cash in 2024 with 40 percent of the capital raised having been invested, up from the previous year’s 16 percent, the Capital Raising Survey 2025 revealed. In addition, 79 percent of investment managers said they still raised fresh cash last year, the report said, providing hope for the beleaguered industry.

The study by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV), its European counterpart INREV and Chicago-based fiduciary association NCREIF is based on a poll of 107 fund managers from 21 countries across Asia Pacific, Europe and the Americas.

ANREV CEO Charles Haase described the capital-raising environment as “tepid” after activity plunged 53 percent in the course of two years.

“The implementation of new tax and trade regimes globally, and the resultant effects on global growth, may well add to the uncertain outlook for this year,” Haase said. “However, despite current headwinds, improvements in the recovery of investment volume point to a return of cautious optimism.”

APAC Strategies Keep Pace

By target geography, capital raised for Asia Pacific strategies represented 30 percent of the total raised among the fund managers surveyed, nearly on a par with the 31 percent dedicated to North American strategies.

“It is noteworthy that the higher capital raising for Asia Pacific strategies, rebounding from 2023 lows, was primarily attributed to the 2024 survey sample, in which a few selected managers achieved marked success in raising capital in certain markets,” ANREV said.

By investor domicile, $41 billion of the capital raised came from APAC investors, ahead of the $29 billion from European investors and the $25 billion from North American investors.

Pension funds remained the primary source of capital, representing 32 percent of the total raised, while sovereign wealth funds and insurance firms provided 10 percent each. Some 48 percent came from other investor types, including government institutions, charities, foundations, non-profits, funds of funds, high-net-worth individuals and family offices. For APAC strategies, pension funds accounted for 21 percent.

By vehicle type, 57 percent of the $123 billion raised globally went into non-listed funds, followed by separate accounts investing directly (17 percent), joint ventures and club deals (11 percent), non-listed debt products (8 percent) and separate accounts investing indirectly (5 percent).

Safe Harbour in Core

Core strategies attracted 48 percent of the total capital raised for APAC non-listed funds in 2024, according to the survey. Higher-risk opportunistic and value-add strategies accounted for 27 percent and 25 percent, respectively.

Single-country and single-sector strategies made up a respective 67 percent and 69 percent of the total capital raised for APAC non-listed funds. Among single-sector funds, industrial/logistics and residential accounted for 32 percent and 21 percent of the total capital raised.

The Capital Raising Survey has been carried out each year since 2015, with data collected jointly by ANREV, INREV and NCREIF. Respondents for the 2025 edition included 51 fund managers domiciled in Europe, 28 in North America, 27 in APAC and one in South America.