Investor types

Real estate investors

Real estate investors own income-producing property for investment return. The group includes pension funds, insurers, real estate investment trusts, sovereign funds, real estate private equity funds and private investors.

What a real estate investor is

Real estate investors own income-producing property for return. The group includes pension funds, insurers, real estate investment trusts (REITs), sovereign funds, real estate private equity funds and private investors. MSCI's measure of the professionally managed market covers commercial property managed by institutional investors for the purpose of investment returns.¹

They differ from property developer families, whose returns come mainly from development and which hold property without a fund life. They also differ from hospitality investors, whose income depends on hotel operations. A real estate investor's return comes principally from rent and from changes in the value of the property it holds.

The main owner groups differ in where their capital comes from and how they hold property.

How large the professionally managed property market is

MSCI estimated the global professionally managed real estate market at US$13.5tn in 2025, the first increase in global market size since 2021.¹ The market expanded 8.5% from US$12.4tn in 2024, ending three consecutive years of contraction.²

The United States is larger than the next four largest markets combined.¹ MSCI's market sizes for the UK, Switzerland, the Gulf and individual Asian markets are published in its full report, which requires registration.

The professionally managed figure is narrower than the total stock of property. It counts only commercial property managed by institutional investors for investment return. Because it is measured in US dollars, a rise in the measure can reflect currency movements as well as new investment, as it did in 2025.

Strategies, vehicles and sub-types

Real estate investors are usually classified by strategy and by vehicle. The four strategies are core, core-plus, value-add and opportunistic, in ascending order of risk: core strategies buy let, stabilised buildings, while value-add and opportunistic strategies take on leasing, refurbishment or development risk and typically use more borrowing. The strategy determines which assets an investor will consider and which investors a seller or fund manager should approach.

The vehicles are listed REITs, unlisted funds, separate accounts managed for a single investor and joint ventures between two or more owners. Unlisted funds are either open-ended, holding core property indefinitely and admitting and redeeming investors periodically, or closed-end, with a fixed life within which the manager buys, improves and sells. Joint ventures are a common way for institutions to invest alongside an operating partner, as the examples below show.

Source of capital and investment horizon

Capital comes from pension funds, insurers, sovereign funds and private wealth. The horizon depends on the vehicle: a closed-end fund must sell its assets within its fund life, while a listed REIT, an open-ended core fund, a separate account or a joint venture can hold property indefinitely. Long-dated liabilities make pension funds and insurers natural holders of core property.

How real estate investors invest in private markets

Real estate is itself a private market for most of these investors. They invest directly in buildings, through unlisted funds, through separate accounts and through joint ventures with operating partners. Investors in private equity real estate funds are described further on the private equity funds page; the adjacent asset class is covered on the infrastructure investors page.

Typical ticket sizes

McKinsey noted that the 2025 increase in global deal value primarily reflected larger average ticket sizes.³ Individual transactions give a sense of scale: in January 2025 Norges Bank Investment Management paid £305.7m for a 25% interest in a London portfolio valued at £1,223m.⁴

How decisions are made

Acquisitions require investment committee approval after valuation, legal and technical due diligence. A typical sequence runs from initial underwriting to agreement of indicative terms and a period of exclusivity. Detailed due diligence on the building, its leases and its financing follows, and final committee approval comes last.

Joint ventures add a further layer. Where an institution buys a stake alongside an existing owner, the parties agree in advance which decisions each can take and who manages the property.

What real estate investors look for

The 2025 market data show where capital moved: industrial property, including data centres, gained share, while offices lost share but remained the largest sector at 26.8% of the global market.¹ Beyond sector, investors assess lease length, tenant quality, the capital expenditure a building needs and whether it can be refinanced on acceptable terms.

Regulation and governance

Regulation depends on the investor rather than on the asset. EU insurers hold property under Solvency II; EU fund managers are subject to the Alternative Investment Fund Managers Directive (AIFMD); REITs operate under national REIT regimes; pension funds invest under fiduciary duties to their members. The detailed requirements turn on local law.

Trends in 2025 and 2026

Three trends stand out in the 2025 data published in 2026.

1. The market grew again. Global professionally managed real estate rose to US$13.5tn in 2025, the first increase since 2021. Of the 38 markets in MSCI's study, 35 grew.¹
2. Much of the growth was currency. MSCI attributed much of the 8.5% expansion to currency effects.¹
3. Industrial and data centres gained share. Industrial, including data centres, reached a 20.5% share of the global market, while offices lost share.¹

Transaction activity also recovered: global deal value rose about 12% to US$873bn in 2025, according to McKinsey.³ Minority stakes in long-held portfolios offered sovereign capital another route into prime property, as in the Mayfair joint venture below.⁴

Notable examples

Blackstone and PATRIZIA are managers that invest on behalf of institutions and private wealth. The Mayfair joint venture shows the other route: a sovereign investor taking a minority stake alongside a family owner that keeps management, as described on the property developer families page.

How advisers and placement agents work with real estate investors

Brokers and capital advisers run sale and recapitalisation processes for property owners. On a sale, the broker prepares the marketing material, runs a competitive process and manages the data room. On a capital raise, advisers match operating partners or owners with institutions willing to take an equity stake or provide joint venture capital. In hotels, JLL advised on US$10.6bn of hotel sales in 2025.⁷ Anglo-Suisse Capital advises on capital raising, M&A and secondary transactions with professional investors.

Frequently asked questions

How big is the institutional property market?

MSCI estimated the global professionally managed real estate market at US$13.5tn in 2025.¹

Which property sector is largest?

Offices, at 26.8% of the global professionally managed market in 2025.¹

Is industrial property growing?

Yes. Industrial, including data centres, reached a 20.5% share in 2025.¹

Did transaction volumes recover in 2025?

Global deal value rose about 12% to US$873bn, according to McKinsey citing MSCI Real Capital Analytics.³

Is the United States the largest market?

Yes. At US$5.1tn in 2025² it is larger than the next four markets combined.¹

Did the market grow because property values rose?

Only partly. MSCI attributed much of the 8.5% rise in 2025 to currency effects.¹

How large is Blackstone's real estate business?

Blackstone reported US$309.0bn of real estate assets under management at 30 September 2026.⁵

What is the difference between a real estate investor and a property developer family?

A real estate investor earns mainly from owning let property. A property developer family earns mainly from development and is a family-controlled operating business.

Working with Anglo-Suisse Capital

Anglo-Suisse Capital advises companies, fund managers and shareholders on capital raising, M&A and secondary transactions with professional investors in the UK, Switzerland and internationally.

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Sources

1. MSCI: Real Estate Market Size (3 August 2026)
2. MSCI: Defining and benchmarking the global private real estate market, presentation (10 September 2026)
3. McKinsey: Global Private Markets Report, real estate (2026)
4. Norges Bank Investment Management: Fund makes new investment in London (22 January 2025)
5. Blackstone: Third quarter 2026 results, Form 8-K exhibit 99.1 (22 October 2026)
6. PATRIZIA: FY 2025 financial results (4 March 2026)
7. JLL: JLL ranked as the leading global hotel investment advisor (9 March 2026)

This page is general information for professional investors and is not investment advice. Figures are taken from the sources listed, as at the dates stated.