High net-worth investors are loving real estate, according to a survey by the Investment Program Association (IPA). CEO Kevin Hogan says individual investors are coming to recognize what institutional players have known for years: CRE offers great value and steady returns. (Gone are the days of investing cash in Hollywood blockbusters.)80% of the 500 investors IPA surveyed believe CRE will perform the same or better than the equity market over the next five years. 45% expect to include non-listed REITs in their future portfolio (a 15% increase in future ownership), and 24% plan to include business development companies (an 11% bump).
Kevin tells us the increasing investment is substantial: Last year, high net-worth investors put $13B into CRE. (One example: a non-traded REIT affiliate of WP Carey purchased KBR tower, above, in November.) But were on track to do $20B this year, a 30% increase YOY. IPAs study polled 501 US investors with a household income of at least $150k and net investable assets over $250k.
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