A new PERE survey reveals 45% of investors plan to deploy more capital into real estate in 2026. Two-thirds of institutions are currently underallocated to the asset class, with most either maintaining or increasing their investment levels this year.

This trend signals a potential shift as institutional portfolios seek yield amid volatile public markets. Real estate's role as an inflation hedge and income generator is attracting capital from pension funds and sovereign wealth funds, which have historically been underweight in the sector.

The planned inflows could stabilize property markets after recent valuation declines. Investors will likely target logistics, data centers, and multifamily assets. The key test will be whether capital deployment accelerates in 2025 as market uncertainty eases and debt financing becomes more accessible.