As societal demand for infrastructure has been growing, so have investor allocations to the asset class. Hodes Weill & Associates and Cornell University run an annual survey of institutional investors to assess allocations and investment objectives for infrastructure as an asset class. The 2025 Infrastructure Allocations Monitor surveyed 115 institutional investors in 25 countries with a total AUM of over US$10.6 trillion. Investor target allocations to infrastructure increased for the second consecutive year to 5.9%, and 98% of investors were expecting to either increase or keep their allocations the same over the next 12 months.
Figure 3: Target allocations across infrastructure investors and global infrastructure fundraising
Infrastructure fundraising rose sharply in 2025, increasing by 120% year‑on‑year to reach $289bn. At the same time, the proportion of institutions identifying themselves as under‑allocated to infrastructure in Hodes Weill & Associates’ survey declined to 56% in 2025 from 58% in 2024, and 61% in 2023. This reduction in under‑allocation, despite continued increases in target allocations, suggests that investor commitments are increasingly translating into capital deployment.
Reinforcing this trend in the UK is the 2025 Mansion House Accord. This agreement was made by 17 major UK Defined Contribution (DC) pension providers and is strongly supported by the UK Government. Institutions have committed to allocate at least 10% of their DC funds into private markets by 2030 with a further commitment of a minimum of 5% dedicated to UK private markets. The Accord’s intent is to unlock long term-capital for UK infrastructure, clean energy, private equity, and growth assets. As at May 2025, the signatories collectively managed over £252bn of assets.
The impact for UK real estate markets is that more capital will be targeting assets with predictable cashflows, lower volatility, strong governance, and transparency. Assets that can credibly be framed as long-term growth enablers are structurally advantaged. Pension providers have stated that deployment depends on existence of ‘suitable investible assets’ at scale, so in practice, this favours platforms over single assets, and portfolios over one-off deals. The 5% dedication to UK private markets will also benefit local authorities, creating opportunities for councils to partner with pension-backed capital for regeneration projects and social infrastructure such as social and senior housing, and healthcare facilities.
Real estate investor allocations to infrastructure-overlapping assets have also been rising. Evidence from CBRE’s annual European Investor Intentions Survey indicates strong investor appetite for infrastructure-adjacent sectors. In 2026, 69% of respondents reported an intention to allocate capital to at least one alternative sector, up from 62% in 2025. Several of the targeted Alternative sectors, such as Affordable Housing, Data Centres, and Healthcare, share fundamental characteristics with infrastructure, and investors directly targeting social and economic infrastructure increased from 10% in 2023 to 17% in 2026.