Family Offices Flush With Cash Are Relocating Assets Into Real Estate

Family offices—the private wealth management firms serving ultra-high-net-worth families — are relocating more assets into real estate than ever before and reshaping the financial investing landscape.

The residential and industrial sectors are the biggest beneficiaries of the shift towards real estate, according to Knight Frank‘s 2025 Wealth Report. The report surveyed 150 single and multifamily offices globally that managed an average of $560 million each.

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According to the report, over the last 18 months, 28% of family offices have invested more money in real estate than in any other investment. Office space was the top category, followed by luxury residential, industrial properties, and hotels. This could be the tip of the iceberg, as 44% of family offices questioned said they planned to increase their real estate allocations. The US, Canada, and the UK were the most active real estate buyers.

Family Offices Have Invested $806 Billion Since 2023

The move towards property investing marks a comeback of sorts for the sector, particularly commercial real estate which saw it contract by almost half in 2023. Since then, global real estate investment has increased 8% to $806 billion, according to the report, with the industrial sector, buoyed by e-commerce, data centers, and more, leading the way.

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The Rise Of Family Offices

Family offices have grown in popularity in recent years. According to a recent report by Deloitte Private, there are an estimated 8,030 single family offices in the world today, up from roughly 6,130 in 2019. It’s projected to grow to more than 10,720 by 2030, a remarkable 75% increase. The assets under management are expected to rise 73% from $3.1 trillion today to $5.4 trillion by 2030.

According to CNBC, family offices are projected to surpass hedge funds, with assets expected to hit $5.4 trillion by 2030. The number of single-family offices, which cater to wealthy families worth $100 million or more, is projected to rise from 8,000 to more than 10,700.

Family offices have become prime targets for Venture capital firms, private equity interests, and private companies that want to participate in the rapidly growing investment sector. 

See Also: CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — here’s how to invest in their private credit fund that targets 12% annual interest rate.

The Advantage Of Family Offices

Family offices require none of the oversight and regulation of hedge funds and private equity. As they are privately held, discretion is paramount, and there is no obligation to report earnings, allowing the freedom to make bold investment decisions without public scrutiny. As the name suggests, a family office is concerned only with a family’s best interests without the need to satisfy investors, giving them an edge in the investment market.

According to Deloitte’s report, the wealth held by family offices is expected to reach $9.5 trillion by 2030, more than doubling over the decade. It is becoming an increasing sector of major banks’ portfolios. According to a J.P. Morgan private bank Global Family Office Report, family offices now allocate 45% of their total portfolio to alternative investments. 

Why Real Estate?

The ease of succession is important to family offices. According to Forbes, real estate’s ability to generate cash flow, along with its inherent structural set-up, demands formality that can align family members and mimic conflict. Unlike investing in companies and stocks, real estate is less nebulous and has predictable outcomes based on the condition and location of the asset. 

You Can Profit From Real Estate Without Being A Landlord

Real estate is a great way to diversify your portfolio and earn high returns, but it can also be a big hassle. Luckily, there are other ways to tap into the power of real estate without owning property. Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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