Capital is flowing back into real estate but following unconventional patterns after last week's MIPIM conference in Cannes. Swiss Life Asset Managers reports increasing risk appetite as investors diversify from core to core-plus strategies, focusing on active management to drive returns following market repricing.

The value-add space shows bifurcated risk appetites, with institutional investors preferring single investments over dedicated funds. CBRE Investment Management raised over $2.25 billion for its second global real estate secondaries fund, capitalizing on investors' desire for higher returns with less risk than value-add strategies. Meanwhile, capital is shifting from credit back to equity as risk-free rates improve.

Investors seek "something new" beyond traditional property types, while geopolitical tensions may slow near-term allocations. Arrow Capital Partners notes committees may move forward at a slower pace despite renewed confidence prior to the Iran conflict, reflecting the tension between emerging opportunities and mounting uncertainty.