Most CRE traders might imagine property are overvalued, however there’s a silver lining: they nonetheless worth the diversification advantages the sector brings.
Preqin’s most up-to-date investor survey from November 2022 reveals that 74% of traders imagine actual property property are overvalued, with fund managers saying they count on valuations to fall. However in accordance with Dave Lowery, Head of Analysis Insights, the diversification advantages “stay extremely regarded” by traders. The asset class additionally gives a comparatively dependable earnings stream, Preqin analysts say, whereas offering a possible inflation hedge.
“There might also be shopping for alternatives for fund managers who can draw down cash, with 43% of survey respondents suggesting there’s decreased competitors for property in contrast with 12 months earlier. In our November 2021 survey, solely 5% mentioned they noticed much less competitors,” Preqin First Shut editor Shaun Beaney says, including that internationally, stable demand stays for APAC-focused actual property funds.
