Global real estate fundraising hits multi-year low as investors pivot to non-core strategies

Global real estate fundraising fell to $81.7 billion in the first half of 2026, while new fund launches dropped to their lowest targeted capital level since 2017, according to With Intelligence and S&P Global. The slowdown is pushing more allocators toward non-core strategies as high borrowing costs, macro uncertainty and geopolitical volatility weigh on the market.

Why it matters: - Real estate fundraising is weakening at a time when institutional investors are still looking for hard-asset exposure. - The shift toward non-core strategies suggests capital is moving away from traditional core real estate and into areas seen as more flexible or better positioned for the current market.

What happened: - Global real estate fundraising totaled $81.7 billion in the first six months of 2026, according to the Real Estate Trends Report 2026 from With Intelligence and S&P Global. - That was the third-lowest half-year fundraising total in more than a decade. - New fund launches reached 276 funds in the first half, with $74.3 billion targeted, the lowest six-month capital target level since 2017. - More investors are turning to non-core real estate strategies to help fill the fundraising gap.

The details: - With Intelligence said first-half fundraising marked the lowest level since 2024. - The report said non-core strategies accounted for 70% of first-half intentions among allocators tracked by With Intelligence. - U.S. public pensions dominated the ranking of the most active mandate issuers. - The report also said With Intelligence data and insights are available on the S&P Capital IQ Pro platform. - The full report is available here.

Between the lines: - Igor Pakovic, global real estate research lead at With Intelligence, said geopolitical volatility, macroeconomic uncertainty and high borrowing costs have intensified the fundraising slowdown in 2026. - The data point to a market where investors are being more selective and stretching beyond core property strategies to keep deploying capital. - Lower launch targets and smaller fundraises can signal caution from managers as well as a tougher capital-raising environment.

What's next: - Fundraising trends will likely hinge on whether borrowing costs ease and macro conditions stabilize. - Non-core strategies may continue to capture a larger share of investor intent if traditional real estate fundraising stays constrained. - With Intelligence and S&P Global are positioning the report and related data as tools for tracking how allocator behavior changes through the rest of 2026.

The bottom line: - Global real estate capital raising is under pressure, and investor appetite is shifting toward non-core plays as managers face a harder fundraising market.