In recent years i family office, structures dedicated to managing the assets of very wealthy families, have significantly intensified their commitment to the real estate sector. According to the Wealth Report 2025 According to Knight Frank, approximately 40% of family offices globally currently have active investments in real estate, with a strong preference for diversified assets ranging from offices to luxury properties, industrial complexes and hotels.
Why real estate is becoming central again
The interest in real estate is not an occasional phenomenon: it reflects a redefinition of capital allocation strategies by family offices, which are increasingly oriented towards assets with pStable return profiles and long-term value prospects. Real estate is considered a complement to volatile financial instruments such as stocks or private equity, often perceived as a "safe haven" for capital in an uncertain economic environment.
In particular, according to PwC data, virtually 39% of family offices' portfolio allocations are now made up of real estate investments, a clear sign that this asset class has gained ground compared to other alternatives.
Asset types and selected markets
The diversity of real estate investments is remarkable. Knight Frank's research identifies some key trends:
- Commercial offices as the primary asset chosen by 20% of family offices.
- Luxury residential properties followed by 17%.
- Industrial and logistics properties (14%) and hotel/hospitality (12%).
This diversification reflects not only a search for yield, but also a desire to balance risks and opportunities in different markets: from office space in global cities with strong rental demand, to warehouse/logistics linked to the growth of e-commerce, to hospitality, driven by the post-pandemic recovery in international travel.
Time horizon and approach
One of the peculiar characteristics of family office real estate investments is theorLong-term horizon. According to Knight Frank, only a fraction of real estate investments have a maturity of less than three years; the majority, approximately 37%, are looking at periods of nine years or more. This approach is typical of investors who view real estate as a means of preserving and increasing value over time, rather than as short-term speculative investments.
Challenges and barriers
Despite the interest, family offices face some challenges in real estate. These include finding reliable partners for complex transactions, managing tax and regulatory complexity, and intense competition for prime assets. In particular, regarding 23% of respondents indicate the difficulty in finding reliable partners as one of the main barriers.
Generational trends and sustainability
Another emerging element concerns generational changes within family offices. Younger generations, millennials and Gen Z, are taking on increasing decision-making roles and are showing a strong interest in sustainability in real estate. Sixty-three percent of millennials surveyed in the report said they have already allocated capital to ESG-compliant real estate assets, compared to 35% of baby boomers. This shift isn't just an aesthetic phenomenon: it reflects the growing importance of green, energy-efficient, and environmentally certified buildings, which not only meet social demands but often generate better long-term operating returns thanks to lower costs and greater tenant appeal.
Macro data on real estate activity
Global data paint a multifaceted picture. According to the Global Family Office Deals Study 2025 According to PwC, real estate deals led by family offices have seen a decline in transaction volume and value from their mid-2021 peaks, reflecting increased investor selectivity, but remain significant, with thousands of transactions completed globally.
The Italian context
The push towards real estate is also gaining momentum in Italy. According to a JLL analysis, in 2024, private investors, including family offices and HNWIs, accounted for approximately 10% of total domestic commercial real estate volumes, a 68% increase year-over-year. The first quarter of 2025 confirmed this growth, with private investments accounting for approximately 24% of total volumes. This trend is driven by the rise of ultra-wealthy individuals in Italy and the growing appeal of commercial and logistics assets, especially in Milan and other major cities, where demand for quality spaces remains strong.
In 2025–2026 the family office Global households are consolidating real estate as a central component of their investment strategies. While facing operational and competitive challenges, the trend toward real assets with long-term horizons is clear: luxury properties, industrial spaces, and hospitality facilities are occupying an increasingly large portion of these families' portfolios. The combination of stable returns, diversification from financial markets, and the ability to preserve capital in uncertain scenarios strengthens the appeal of real estate, even in an era dominated by technology, ESG, and new alternative assets.
