Capital raising activity experienced a significant decline in 2024, with investment managers surveyed raising a minimum of US$123 billion in new capital for investment into non-listed real estate – a 5% year-on-year fall in capital raised, which is reflective of subdued market conditions, according to a recent survey

The effects of market uncertainty and a shifting geopolitical environment continued to weigh on capital raising activity in 2024, finds The Capital Raising Survey 2025, published by Anrev, Inrev and NCREIF, three associations representing property investors. Nonetheless, the majority of investment managers surveyed ( 79% ) indicate that they still raised capital last year, affirming that real estate remains an important asset class for investors.

An important finding of this year's survey reveals signs of dry powder deployment in 2024. As well, 40% of the capital raised in 2024 has been invested, indicating a significant rise in the portion of capital being deployed, up from 16% in the previous year.

Capital raised for Asia-Pacific strategies represented 30% of total capital raised in the survey sample, nearly on par with North American strategies ( 31% ). The higher capital raising for Asia-Pacific strategies, rebounding from 2023 lows, the survey shares, was primarily attributed to the 2024 survey sample, in which a few selected managers achieved marked success in raising capital in certain markets.

Pension funds, the survey points out, are still a key source of capital, representing 32% of the total capital raised, albeit the survey revealed increasing diversity in the source of capital entering non-listed real estate.

For Asia-Pacific strategies, pension funds, the survey states, accounted for 21% of the source of capital raised, which remained largely unchanged. Nonetheless, insurance companies and sovereign wealth funds have shown less representation, and the overall composition has demonstrated increasingly diverse investor funding sources.

By strategy, core-style funds attracted 48% of the total capital raised in 2024, reflecting a renewed preference for core strategies during periods of market uncertainty. Riskier investment styles accounted for 52% of the capital raised by non-listed real estate funds in the region, with 27% allocated to opportunity funds and 25% to value-added funds.

Single-country and single-sector strategy funds, the survey finds, have raised 67% and 69%, respectively, of the total capital raised for Asia-Pacific non-listed funds in 2024. Of note, for single-sector funds, industrial and logistics strategy funds and residential funds raised 53% of all capital raised for non-listed real estate funds in 2024, with 32% and 21%, respectively, of the total capital raised.

“Capital raising activity in 2024 declined further year on year and is down 53% from its 2022 peak,” notes Charles Haase, Anrev’s chief executive. “The implementation of new tax and trade regimes globally, and the resultant effects on global growth, may well add to the uncertain outlook for this year. However, despite current headwinds, improvements in the recovery of investment volume point to a return of cautious optimism.”