Real estate special funds are booming: Investors are betting on Germany and infrastructure!

Real estate special funds are booming: Investors are betting on Germany and infrastructure!

German institutional investors are showing growing interest in special real estate funds in the first half of 2025. This emerges from the current fund monitor from the consulting firm Lagrange. The index value for interest in real estate funds rose to 7.06 points, compared to 6.83 points at the end of the previous year. Residential properties, retail properties with a focus on food and logistics properties are currently particularly in demand. Real estate debt and data centers are also enjoying increasing popularity.

In the area of ​​infrastructure investments, an even higher index value of 7.21 points was recorded, which underlines the importance of this asset class. Investors' risk appetite is clearly structured: core-plus investments make up 42% of the mentions, followed by core investments with 26%, value-add with 24% and opportunistic investments, which only reach 8%. These preferences are also reflected in the demand for different types of property.

Popular property types and target regions

The demand for real estate differs depending on the type of use. Residential property remains the most sought-after category, accounting for 13% of mentions, although there is a slight downward trend. Retail properties, which are particularly interesting for local supplies, increase to 12%. In addition, logistics properties are recording a demand of 10%, while real estate debt and data centers both have an interest of 9%. Office properties, on the other hand, which account for 7%, are less in demand.

Germany remains the leading destination country for real estate investments with 16%, followed by the Benelux countries with 14%. France and Austria are within reach at 8-10%, while interest in the USA has fallen to 6%. These trends primarily criticize the high financing situation and prices on the real estate market, which are seen as the greatest challenges by 39% and 27% of investors respectively.

Infrastructure investments on the rise

When it comes to infrastructure investments, there are clear preferences for photovoltaics at 21%, followed by battery storage at 16%. Infrastructure debt is also more than relevant at 14%. At 43%, Germany has the greatest attractiveness in the infrastructure sector, while other European countries reach 38%. A decline in attractiveness can be observed in North America, while Asia is slightly up.

The main hurdles to investing in real estate specialty funds are financing and product complexity, which are identified as the biggest challenges. A positive trend is the rising secondary market index, which stands at 6.24 points for purchases of real estate fund shares and 6.58 points for sales. Purchases focus primarily on residential and local retail properties, while sales largely concern office and logistics funds. What is also interesting is the growing interest in battery storage and specialized infrastructure managers.

Cash Online reports that the specific market opportunities and the potential for risk diversification remain crucial for many investors. The combination of increasing demand and growing challenges shows how dynamically the landscape of real estate and infrastructure investments is changing.

Boerse.de adds that acceptance for core-plus investments dominates and the opportunities in this area must be illuminated in order to meet investors' expectations.