R
eal estate allocations from institutions are poised to decrease in 2025 after holding steady at 10.8% for two years, according to a report by Hodes Weill and Cornell University's Institutional Real Estate Allocations Monitor. However, signs of recovery are emerging as inflation eases and interest rates drop, stabilizing valuations. Investors are increasingly drawn to value-add and opportunistic strategies in the Americas, with direct investments gaining favor over funds. "Real estate valuation metrics have likely bottomed," said Douglas Weill, Managing Partner at Hodes Weill & Associates. As transaction volumes rise, allocations are expected to accelerate.