Investors to reduce real estate spend as returns predicted to fall

Returns from real estate will fall over the next 12 months, according a survey of investors by data provider Preqin.

It found 23% of investors expect the asset class to perform worse in the next 12 months.

This is likely due to high valuations putting pressure on pricing, the data provider said. Some 29% of the 177 respondents considered real estate assets to be overvalued and said they expect a pricing correction next year.

Meanwhile, four out of five (82%) investors surveyed ranked asset valuations as the biggest challenge to future returns.

This was followed