Family offices—private firms managing the wealth of ultra-high-net-worth individuals—are pouring more of their assets into real estate, reshaping the investment landscape.
According to Knight Frank’s 2025 Wealth Report, which surveyed 150 single and multi-family offices managing an average of $560 million each, real estate has become a preferred asset class. Over the past 18 months, 28% of these offices allocated more funds to real estate than any other investment type. Office spaces led the charge, followed by luxury residential properties, industrial assets, and hotels. Additionally, 44% of surveyed family offices plan to expand their real estate holdings further. The most active markets include the U.S., Canada, and the U.K.
This resurgence in real estate investment comes after a sharp downturn in commercial property transactions in 2023. However, the sector has rebounded, with global real estate investments rising by 8% to $806 billion. Industrial real estate, particularly bolstered by the growth of e-commerce and data centers, is leading the recovery.
The Rise of Family Offices as Major Investors
Family offices have surged in popularity, with their numbers growing from approximately 6,130 in 2019 to around 8,030 today. Projections suggest that figure could exceed 10,720 by 2030—a 75% increase. The assets they manage are also expected to climb from $3.1 trillion to $5.4 trillion by the decade’s end, potentially surpassing hedge funds.
Due to their private nature, family offices operate with fewer regulatory constraints compared to hedge funds and private equity firms. This allows them to make investment decisions with a high degree of discretion, focusing solely on the financial well-being of the families they serve rather than external investors.
Why Real Estate Appeals to Family Offices
Real estate offers a stable source of income and predictable returns, making it an attractive asset for long-term wealth preservation. Unlike volatile stock market investments, real estate’s tangible nature and ability to generate consistent cash flow make it an ideal choice for family offices looking to build lasting legacies.
Furthermore, the structured nature of real estate investments helps facilitate smooth succession planning, ensuring family wealth is effectively managed across generations.
As family offices continue to expand their footprint in alternative investments, banks and private equity firms are increasingly targeting them as key players in the market. With projections estimating their total wealth could surpass $9.5 trillion by 2030, their influence on the investment landscape is only expected to grow.
