Real Estate, Infra Allocations Poised to Rise as Manager Optimism Builds — Evening Brief – 08.05.25
Allocations to real estate and infrastructure are expected to increase over the next 12 months, according to the latest Core Asset Managers’ Mood Index (CAMMI) from Gen II Fund Services. The index, which surveys 110 alternative fund managers across Europe and the U.K., recorded a score of 57.77 for real estate and infrastructure—a firmly positive reading that signals growing institutional interest in real assets heading into the first quarter of 2026.
The CAMMI Index measures sentiment on a scale from 0 to 100, with scores above 50 reflecting a net increase in allocation expectations. The 57.77 reading places real assets among the most favorably viewed private market sectors, reinforcing broader trends in investor demand for yield-oriented and inflation-resilient strategies.
According to the report, 44% of respondents anticipate boosting their real asset exposure in the coming year, compared to 28% who expect to decrease allocations. The findings reflect growing conviction around the sector’s fundamentals, as institutional investors react to stabilizing real estate markets and infrastructure’s steady cash flow potential. In particular, value-add strategies, operationally net-zero assets, and opportunities stemming from pricing dislocations are gaining traction among allocators seeking long-term income visibility and defensive positioning.
“The CAMMI Index score for real assets clearly reflects the emerging optimism within the European Real Estate market,” said Ben Mardon, head of real assets, Europe at Gen II. “We expect this positive momentum to carry through 2025 and potentially into 2026, reflecting the appeal of real estate investments across the U.K. and Europe.”
The report cites improving asset values, stronger exit conditions, and supply constraints in high-quality commercial properties as key tailwinds. Limited availability in prime locations is expected to drive rental growth into 2025, supporting capital appreciation and income durability. Meanwhile, nearly 27% of managers indicated plans to launch new real estate or infrastructure funds by Q1 2026, highlighting continued institutional appetite for the asset class.
Despite lingering macroeconomic headwinds, the outlook is bolstered by declining interest rates and innovative fund financing strategies such as NAV-based lending and continuation vehicles, which are helping managers manage liquidity and pursue growth initiatives.
The CAMMI survey incorporates feedback from a diverse set of private markets professionals—including investment directors, CFOs, COOs, legal experts, and investor relations leaders. Half of respondents are based in the U.K., with the remainder spread across continental Europe. The majority of firms manage more than $500 million in assets, with most recent fund launches domiciled in European jurisdictions.