‘A more discerning market’: What’s driving real estate’s fundraising upswing

The PERE podcast analyzes the 2025 private real estate fundraising landscape, highlighting a 29% increase compared to 2024, the first rise since 2021. While this rebound is significant, its sustainability remains uncertain, with mega-managers like Blackstone and Brookfield heavily influencing the figures, accounting for 16% of total capital raised. Data centers have emerged as a favored sector, contrasting with declines in residential and industrial strategies, though doubts about long-term data center demand are surfacing. Opportunistic strategies regained prominence, driven by large funds and investor demand for higher returns. Despite increased capital, fundraising timelines stretched to a record 25 months, affecting nearly all managers. The discussion also touches on North America's leading position in attracting capital and the growing focus on Middle Eastern capital as both a source and destination for investment.