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Global real estate fund market slows but pick-up expected

North America led the way in the first three months of the year, securing 72% of the number of funds targeting the region and 63% of total capital.

Funds focused on Europe secured 23% of closes and 21% of total capital, while Asia Pacific only accounted for 5% of closings and 13% of total capital.

dry powder

While the last three months of 2021 saw an increase in deals activity, it dropped sharply earlier this year, although only to a level more in line with longer-term trends.

But there is $365bn of dry powder in funds, up slightly from last quarter but slightly behind the $373bn seen at the end of 2020.

“A pause for breath isn’t necessarily a bad thing,” commented Dave Lowry, SVP and Head of Research Insights at Prekin. “After a record Q4 2021, many investors will be waiting for these allocations to be deployed before infusing further capital for the asset class. But the scale of activity in Q1 2022 bodes well for the future, and activity is likely to pick up in 2022. ,

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