Suche
Mein Konto
Investors withdraw money from real estate funds
Find out why real estate funds are struggling with outflows and how the industry is adapting. Net cash outflows and liquidity ratios in focus. Take care of your finances.
Investors withdraw money from real estate funds
Current developments in the area of open real estate funds show that investors have invested more capital in these funds in recent years. But a change is on the horizon for 2024, as net outflows of funds are expected. In the first two months of 2024, outflows amounted to 500 million euros, and since the outflows began last year, the total threshold of one billion euros has been exceeded.
The rating agency Scope has looked into this situation in more detail and is forecasting significant net outflows of funds for 2024. The peak of monthly outflows of funds is expected to be in the third quarter. Fund managers have prepared for this situation by using the twelve-month notice period for fund shares to facilitate their liquidity planning.
The current data shows a different development of the liquidity ratios depending on the fund. While some funds have increased their liquidity ratio compared to the previous year, others have seen a decline. The fund managers could be forced to sell existing properties at discounts, which could have a negative impact on the fund share price. Nevertheless, the funds have a total of more than 17 billion euros in cash holdings to cover cash outflows.
The funds are struggling with challenges caused by the interest rate turnaround and falling house prices. Other investment alternatives currently offer more attractive returns than real estate funds, which could lead to outflows. The regulations for open-ended real estate funds were adjusted after the 2008 financial crisis to ensure liquidity and restore investor confidence. Certain holding periods and regulations now apply that are intended to prevent many shareholders from suddenly selling.