The Institutional Real Estate Allocations Monitor Report's findings last week indicate that Institutional investment in real estate has for the first time reached 10% of their portfolios.
However, the report also finds that investment in property is waning due to a decreasing investor confidence. The report found that the causes for this include geopolitical unrest, possible interest rate increases and global capital markets volatility.
In the UK, there is huge uncertainty in the market around Brexit and recent significant changes in the tax landscape - some of which are still up in the air, such as changes to the tax treatment of non-resident landlords. In Ireland, major changes to the taxation of land announcement last week shot a wave of concern regarding the impact on institutional investors' appetite to continue investment.
The UK's Budget will be announced on 22 November, and is an opportunity for the UK government to return confidence to institutional investors, and show clear, fair and consistent tax policies which encourage investment in housing at this critical time.
Global institutional investors in 2017 targeted real estate for more than 10 percent of their portfolio for the first time in a major milestone but confidence in the asset is waning and will likely continue in the short term, a survey showed on Thursday.