INREV. Investor Universe Italy Study 2019
talian investors’ current exposure to real estate (estimated at 4.2% of total AUM) is lower than that of European investors more widely (11.2%). Italian survey respondents indicated they intend to lower their real estate allocations, contrary to their European counterparties. The main reason Italian investors invest in real estate is to diversify risk in the overall portfolio. Income return is also important for these investors, to cover outgoings for pensions and insurance liabilities. Riskadjusted performance is another important reason for investing in real estate. Italian investors’ exposure to real estate is mainly implemented via non-listed real estate. They are attracted to the non-listed sector due to its capacity for accessing new markets, expert management and risk/return profile compared to other asset classes. Most investors are confident about investing directly in domestic real estate, but value the support of local asset managers externally.
Italian real estate investors allocate most of their capital to office, retail and residential sectors. While allocations to retail and residential are closely in line with the European averages, Italian investors in the sample have more than half of their real estate in offices. There has been a shift from residential to commercial real estate in the last few years and this trend is confirmed for the future.