Trends fuelling the surge in real estate investments, study reveals
In a recent survey conducted by Aviva Investors, 60% of respondents highlighted diversification as a key driver for their investments over the next two years, with real assets being a primary focus. The study did not, however, provide specific data on the percentage of funds allocated to real assets.
Real assets, which include infrastructure, real estate, and natural resources, are often viewed as an attractive asset class during periods of rising or high inflation. The 2025 Real Assets Report by Phenix Capital, on the other hand, asserts that real assets are becoming a safe haven for impact investors.
The Aviva Investors' study revealed that 72% of these funds are focused on developed markets, with Europe and North America hosting the majority. Conversely, the report by Phenix Capital states that emerging markets make up 17% of the real estate impact funds tracked by them, with Africa and South and Central America being the most popular regions.
Interestingly, close to half of the real assets funds are made up of infrastructure impact funds, while the remainder are global real asset funds. Key drivers for long-term capital allocation include megatrends such as climate change, the energy transition, digitalisation, and ageing populations.
The growth of real assets funds and their geographical distribution was not covered in the Aviva Investors' study. However, it is worth noting that the number of real assets funds has grown 180% to 688 over the past decade, raising more than €222bn in total capital.
Pension funds were identified as the most active investors in real assets funds, collectively committing to 221 funds. The study did not provide information on the percentage of funds made up of infrastructure impact funds or the percentage of funds currently open for investment.
The organization that published the 2025 Real Assets Report is GRESB, and they observe that the regions most frequently represented in the Real Assets impact funds they track are Europe and North America.
In conclusion, real assets are gaining traction among investors for their potential to provide diversification and impact. As the market for real assets continues to grow, it will be interesting to see how the geographical distribution and focus of these funds evolve.
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