“Despite sluggish activity in Q1, robust deal making in Q2 and Q3 has put 2017 on course to match the activity seen last year,” says Oliver Senchal, head of real estate products at Preqin. “The year so far has seen a total of 3,304 deals worth $174 billion, approaching the 3,618 deals worth $185 billion seen in the first three quarters of 2016. This seems to indicate that private equity real estate firms have been unaffected by talk of whether we have reached the peak of the market and are continuing to do deals.”

However, Senchal adds that “concerns over valuations and the ability to find attractive opportunities” may have led private equity firms to pursue the market's lower end in a value play during Q3. He adds that Preqin sees a “long-term shift” in the types of assets acquired in deals backed by private equity.

“Office assets have long constituted the largest part of the deal making market, but in Q3 have seen their share of quarterly deal value decline for the third consecutive quarter,” says Senchal. “Retail and industrial assets are also falling in prominence, while assets such as residential property, land and hotels are becoming larger elements of the market.”