Family Offices Plan to Acquire More CRE Before Rebound

As global real estate markets begin to recover from a steep contraction in 2023, nearly half of family offices plan to increase real estate investments in the coming months, focusing on residential and industrial, per Bloomberg.

According to the latest research from Knight Frank, these high-net-worth entities are increasingly viewing property investments as a key medium- to long-term strategy for preserving and growing wealth.

Rising Real Estate Interest

The Knight Frank Wealth Report, which surveyed 150 single and multifamily offices globally, reveals that 44% of family offices intend to ramp up CRE investments. This shift comes as property markets rebound from a 50% contraction in 2023, with global CRE investment rising by 8% to $806B.

Family offices, with an average portfolio of $560M, are becoming increasingly active in securing properties in sectors like residential, industrial, and office space.

Over the past 18 months, 28% of family offices allocated additional funds to real estate, with office space being the primary target, followed by luxury residential properties, industrial assets, and hotels. The current trend indicates a growing appetite for tangible, long-term assets as a hedge.

Residential And Industrial Lead

Focusing on residential and industrial properties reflects broader market shifts and changing consumer demands.

With e-commerce growth continuing to drive demand for industrial space, and shifting demographics influencing residential real estate demand, family offices are positioning themselves for a strong rebound in these sectors.

These investments are also seen as a way to diversify portfolios and mitigate risks tied to traditional equity markets.

Will Matthews, Knight Frank’s Head of UK Commercial Research, noted private capital will play a pivotal role in driving the recovery of global real estate. “2025 looks to be a turning point for the sector, with increased capital flows propelling renewed momentum,” Matthews said in a statement.

Regional Investment Trends

The survey also highlighted a regional breakdown of family office investments. Firms in the US, Canada, and the UK are particularly active, with many focusing on domestic real estate opportunities. 

However, international family offices, particularly those based in Switzerland, Singapore, and Hong Kong, are taking a more global approach, allocating around a third of their real estate investments to international markets.

Wealthy Fuel Demand

The increased interest in real estate aligns with the broader growth in high-net-worth individuals (HNWIs). The number of individuals with more than $10M in assets rose by 4.4% globally in 2024, bringing the total to 2.3M.

North America saw the largest increase in HNWIs, followed by Asia and Africa, further fueling demand for luxury residential and prime commercial properties.

Looking Ahead

With real estate investments seen as a stable and strategic avenue for wealth preservation, family offices are expected to be major players in the market’s ongoing recovery.

The trend toward diversified portfolios, including increased allocations to residential and industrial sectors, points to a broader shift in how high-net-worth individuals and family offices view the future of property investing.

As the CRE market continues to rebound in 2025, family offices are poised to take advantage of market opportunities and ensure their stronghold in an evolving and dynamic landscape.