Real Estate Funds: Investors Are Happy For Now

A new survey about real estate funds says investors are quite comfortable with the returns they are getting compared to previous years.

According to The Real Deal, the research company Preqin made a recent survey on how real estate investors feel about their investments. The firm interviewed private investors and about 90 percent of them said they are happy with the current situation.

Investors said the returns they expected were delivered and there are some who said they were pleasantly surprised that returns exceeded their expectations. Only 9 percent of the respondents felt disappointment which is even lower than in December 2013 wherein the survey recorded 18 percent. And it was way down compared to December 2012 which recorded 47 percent.

In the same report of The Real Deal, meanwhile, a big percentage of the survey's respondents also showed anxiousness about skyrocketing prices due to high demand and competition. Property valuation is the biggest concern of the group with 63 percent of the interviewees agreeing. It is followed by the flow of the deal at 37 percent and performance at 30 percent.

Preqin head of real estate asset products Andrew Moylan thinks there is nothing to worry about. He said, "Despite high levels of dry powder, and concerns among investors about valuations and the potential impact on future performance, many are planning to commit significant amounts of capital to real estate."

Meanwhile, according to The Dallas Morning News, it is a great time to own a property and lease it out. While it may not be obvious due to the state of real estate investments, the demand for apartments and commercial real estate is very high. The main reason for this is the increased employment rate brought about by a stable economy. This demand is allowing property owners to ask for higher rental rates that translates to bigger profits.