The sixth annual UBS Global Family Office Report represents one of the most comprehensive surveys of ultra high-net-worth investment strategies available today, drawing from 317 UBS family office clients with an average net worth of US$2.7 billion. The survey, conducted from January to April 2025 and supplemented by in-depth interviews through May, provides an authoritative snapshot of family office investment behavior across global markets.
The data reveals that Middle East family offices allocated 14% of their portfolios to real estate in 2024, above the global average of 11%. This substantial commitment places real estate ahead of numerous other investment categories and demonstrates the region’s continued confidence in property as a wealth preservation and growth vehicle.
This allocation pattern reflects a sophisticated approach to portfolio construction, with Middle East family offices maintaining a balanced 50-50 split between traditional and alternative asset classes. The 14% real estate allocation sits comfortably within the alternative assets bucket, alongside private equity, private debt and hedge funds, indicating that these investors view real estate as a core component of their diversification strategy rather than a peripheral holding.
Perhaps the most striking development in the global family office landscape is the dramatic shift in US family office real estate allocations. American family offices increased their real estate exposure from 10% at the end of 2023 to 18% by the end of 2024 – an impressive 80% increase that signals their recognition of significant domestic opportunities.
This surge in US real estate allocation coincides with American family offices’ virtual withdrawal from international markets over the past five years, creating what the report describes as ‘a stronger home bias than ever.’ The combination of increased domestic real estate investment and reduced international exposure suggests that US family offices have identified compelling value propositions in their home market that Middle East investors may wish to evaluate.
The report’s forward-looking data reinforces the positive outlook for real estate investments across all regions. Among global family offices, 29% plan to increase their real estate allocations in 2025, significantly outpacing the 19% who intend to decrease their exposure. This net positive sentiment of 10 percentage points suggests that the asset class continues to offer compelling risk-adjusted returns and portfolio diversification benefits.
The report’s broader findings on family office investment strategies – including their pursuit of structural growth opportunities and enhanced yield through diversification – align well with real estate’s fundamental characteristics as an inflation hedge and income generating asset class, as well as being well-suited for Islamic investors.
As Islamic investors navigate an environment marked by trade war concerns and geopolitical uncertainty, real estate’s role as a tangible, diversifying asset becomes increasingly valuable. For Middle East family offices, maintaining their strong real estate commitment while monitoring opportunities in developed markets, particularly the US, appears to be a prudent strategy supported by the latest global investment trends.
Written by Philip Churchill, first published in Islamic Finance news Volume 22, Issue 27 dated 9th July 2025.