But investment in retail and hotels rose 19% and 7%, respectively, in the third quarter year-on-year, JLL says. Investment in the living sector – which includes multi-housing / build-to-rent and student housing assets – was up 9% year-to-date, despite declines during the quarter.
“Performance across sectors varies – much of the recent rebound reflects the pent-up growth from sectors that have been lagging,” explains Coghlan.
More broadly, as assets are tested by market volatility, investors are increasing their focus on portfolio strategy, Coghlan adds, while opportunistic managers and some of their investors are anticipating dislocation to result in investment opportunities.
While dry powder remains at near-record levels, global fundraising by closed-end real estate funds continued to fall for the fourth consecutive quarter, down 46% year-over-year.
“Rising rates and uncertainty have triggered capital constraints for more market participants, who are increasingly patient and remain on the sidelines,” says Coghlan
