Family Office Real Estate Trends

Dennis Caulfield December 13, 2018

Family offices continue to increase real estate exposure

2018 saw a resurgence in global family offices allocating to the real estate sector. According to the most recent UBS Global Family Office report, 17% of the average family office portfolio is comprised of real estate investments. These investments span both residential and commercial projects, yielding a 12% return on average. This increase spanned all continents - while those domiciled in Europe showed a larger inclination to allocate to the space.  Additionally, European family offices were more open to investing internationally than their North American and Asian counterparts. 

 

Nevertheless, the data shows that family offices are preferential to local investments when it comes to their real estate assets. This is likely due to the physical nature of these investments and the families’ comfortability within the local market.

Additionally, real estate projects make up the majority of families' direct investment and co investment activities


Look for real-estate allocations to continue to rise within the family office space. The real estate asset class offers tremendous returns, a tangible investment, an avenue to invest responsibly, and the ability to work alongside other families - while offering a cleaner due diligence process compared to other direct investment options. 

As always, please connect with us for additional insight on the global family office space.

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Dennis Caulfield

Dennis Caulfield

Business Development Associate at FINTRX powered by Cap Hedge Ventures

About Fintrx

FINTRX was developed by the founders of Capital Hedge, a data research and consulting firm founded in 2007 with a specialty in providing alternative investor research and family office database intelligence to global investment managers. FINTRX is the result of years of client feedback, each looking for a more efficient and organized way to raise capital. By providing continuously updated data, capital raising tools, CRM technology, distribution list creation, and sending capabilities, FINTRX is asset raising simplified.

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