Real estate is now a prime play for sovereign wealth funds (SWFs) as equity markets remain unpredictable, said an analyst Wednesday.
The Sovereign Wealth Fund Institute president Michael Maduell said, "They are looking for long-term investments where they can lock up their capital and not have to continually reinvest that capital." The institute analyzes investments by public asset owners such as SWFs and other long-term governmental investors.
Vehicles such as pension funds and endowments are also increasing investing in real estate and infrastructure, he told CNBC's "Squawk Box" on Wednesday.
For example, Norway's Government Pension Fund Global increased its allocation of real estate and was looking at core property markets in Asia, opening offices in Tokyo and Singapore, noted Maduell. The country's sovereign wealth fund is the largest in the world, with more than $830 billion in AUM.