Overview
- Knight Frank’s year-end report estimates total private equity inflows at about $3.5 billion, with office assets attracting roughly $2.0 billion for a 58% share.
- Housing and warehousing funding fell to $576 million and $510 million respectively, down from $1.18 billion and $1.88 billion in 2024.
- Residential investment shifted toward credit-led and structured instruments, with equity concentrated in de-risked projects with strong execution visibility.
- The consultant attributes the slowdown to a reset across capital costs, exit visibility and valuation alignment, even as macro indicators improved.
- Knight Frank forecasts a measured recovery to around $4.4 billion in 2026, noting the data exclude REITs, InvITs, hospitality and data centres.