Given that the survey was examining plans for the next three years, this is a staggering amount of capital to invest in real estate. Most surprising, perhaps, is that only Ä1.2 billion in new allocations is planned, taking total real estate investment to a planned Ä85.9 billion — it is worth noting, though, that these figures do not allow for capital growth in institutions’ multi-asset portfolios or for liquidity shortages that may prevent investors from fulfilling their real estate investment targets. This could have far-reaching implications for industry participants and the people working for them.

PLUGGING THE GAP

Interestingly, however, current allocations to real estate are more than 40 percent higher than current real estate exposures, which is where that astounding Ä26.9 billion figure comes from. And while the study showed that German institutional investors, overall, anticipate marginally increasing their real est