Defined Contribution Capital in Private Real Estate Tops $51B
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Defined contribution capital invested in private real estate strategies reached $51.6 billion as of year-end 2025, up from $45.3 billion a year ago, a new study finds.
The latest edition of the Private Real Estate in Defined Contribution Survey from the Defined Contribution Real Estate Council, the National Association of Real Estate Investment Managers, the National Council of Real Estate Investment Fiduciaries and the Pension Real Estate Association revealed that of the $51.6 billion of defined contribution capital invested in private real estate at year-end 2025, $42.8 billion was held in dedicated defined contribution vehicles, while $8.8 billion was invested through institutional open-end funds.
During 2025, defined contribution investors contributed $2.1 billion in new inflows to private real estate, while outflows totaled $1.4 billion, resulting in net positive inflows of $725 million–the second consecutive year of net flows.
New investors were a key driver of capital raising. Some 29% of all defined contribution inflows in 2025 came from new investors or mandates, up from 11% in 2024. The shift was most pronounced in institutional real estate vehicles, where 79% of defined contribution inflows came from new investors. New investor inflows into dedicated defined contribution vehicles in 2025 was 14%.
The survey was conducted between May and July 2026 and reflects responses from 13 firms, representing more than $1 trillion of gross assets under management across the industry.
According to the survey, dedicated defined contribution structures continue to account for the majority of defined contribution real estate flows.
Key highlights include:
• 76% of inflows in 2025 were directed to dedicated defined contribution vehicles, with 23% to institutional vehicles.
• Outflows followed a similar pattern, with 64% of redemptions from dedicated defined contribution vehicles and 36% from institutional strategies.
• More than half (54%) of firms reported net inflows in 2025, while 38% reported net outflows.
• Asset mix: The average dedicated defined contribution vehicle targets 87% of assets in private real estate, 11% in listed real estate, and 2% in cash equivalents.
• Full-time equivalents: Most real estate firms have just one dedicated full-time equivalent focused on defined contribution, with 46% having a real estate background, 16% a defined contribution background and 38% a background in both.
