Residential

While the largest diversified funds still rule the pack, capital is increasingly flowing to vehicles with a singular investment focus.

The firm has hired a former EQT Exeter executive to lead investor engagement, fundraising, co-investment and business development functions.

The maturing living sector is attracting new institutional interest seeking stability, says Wes Fuller, Greystar’s chief investment officer.

The Dallas-based manager closed the 10th fund in its flagship value-add series on $3.1bn, a 35% increase on the previous fund.

The firm will focus on converting existing hospitality assets into co-living properties in the country through a value-add strategy.

Although 38% of investors were overallocated to the asset class in 2023, only 27% plan to invest less capital this year.

The outlook for 2024 stands in stark contrast to 2023 as institutional appetite for real estate picks up, says James Jacobs, head of real assets for Lazard’s private capital advisory group.

Investors are hurting from the poor performance of real estate, but this has not diminished their appetite for fresh investments.

The total of $138.93bn raised in 2023 represented a 41% drop from the $236.04bn raised in the 2021 fundraising peak.

In this podcast, Abby Rosenbaum of Oxford Economics discusses how two key global conflicts will be a drag on performance in differing ways.