Phenix Capital: Real estate funds at a glance

31 oktober 2024

Vastgoed

Phenix Capital Group has released its latest Impact Report: Real Estate Funds at a Glance, highlighting trends, growth, and sustainability goals within the real estate investment sector.

The report reveals that since 2015, €37 billion has been committed to real estate impact themes tracked by Phenix Capital’s Impact Funds Database. Currently, real estate funds open for investment are targeting a combined €62 billion. Over the past decade, the number of real estate-focused funds in the Phenix Impact Database has surged by 222%.

Following the European Commission’s Sustainable Finance Action Plan in May 2018, real estate investors have increasingly integrated sustainable practices into their portfolios. According to the 2021 CBRE Global Investor Intentions Survey, 60% of real estate investors had already adopted environmental, social, and governance (ESG) criteria by that year, aligning with industry-wide momentum toward responsible investment.

With ESG now widely regarded as standard practice, real estate is positioned as a finance-first impact investment sector, contributing to at least ten UN Sustainable Development Goals (SDGs), with Sustainable Cities & Communities (SDG11) at the forefront.

Key Highlights:

222% Growth in real estate impact funds since 2015
6.6% of total funds in the Impact Fund Database are real estate-focused
27% of real estate funds currently open for investment
73% of funds prioritize affordable housing
83% have a developed market focus
46.5% are North America-focused

The report includes an in-depth analysis of SDG11, underscoring the critical role of sustainable cities as urban populations grow.

'By 2050, nearly 70% of the world’s population—approximately 6.6 billion people—will live in urban areas. Currently, 4.4 billion people, or 56% of the world’s population, are city dwellers. SDG11 (Sustainable Cities and Communities) not only addresses this trend but also intersects with at least seven other goals, making it a core SDG for real estate impact investment,' the report highlights.

The Impact Database currently tracks 187 real estate funds from 110 fund managers, with 51 funds from 48 organizations open for investment, marking a pivotal time for investors to engage in impactful real estate opportunities.