Perspectives 2021: Capital cautious in covid times

The PERE Investor Perspectives Study surveyed 100 institutional investors, gathering insight on, among other topics, their asset allocations, propensity to invest and performance prediction.

This year’s study reveals private capital displaying cautious sentiments toward real estate – 15 percent plan to invest less in 2021, up from 9 percent reporting the same in the 2020 study. And hearts and minds are shifting away from office and retail – a mere 2 percent and 4 percent say they will commit more to these sectors respectively. Investors’ view of logistics, residential and healthcare is more robust.

Against the covid-19 backdrop, which has caused much pondering over whether new-found virtual habits are here to stay and what long-term impact this might have on assets like offices and shops, these findings are not altogether surprising. But let’s not be too downbeat. Despite current uncertainties, most institutions polled want to hold allocations steady in the months ahead. And with only 8 percent reporting overallocation to the sector, and 34 percent under allocation, there is no shortage of dry powder still seeking a home in property.