At the start of 2025, 81% of GPs said they had a positive outlook for fundraising over the next six months. By midyear, Agora’s sentiment survey showed that 45% of respondents felt raising capital had become more difficult. Interestingly, firms in the Southwest were an outlier, with 25% reporting that raising capital was somewhat less difficult than in other regions.
Agora’s 2024 market pulse report and investor sentiment survey also pointed towards the continued strength of the Southeast and multifamily asset class for 2025.
With that context, Agora compared the 2025 sentiment survey with Q1 and Q2 product data to see where survey responses align with actual results. This report reviews how survey sentiment compares to real-world fundraising activity.
What’s inside the report
This report brings together insights from our 2025 commercial real estate sentiment survey and Agora’s fundraising data from Q1 and Q2 of 2024 and 2025. Comparing the two provides insight into:
- Regional priorities in the survey compared to actual project and capital flows.
- Reported asset class focus areas compared to realized allocations.
- Sentiment on capital raising conditions compared to changes in capital shares.
Key findings
Notable comparisons between the sentiment survey and Agora’s product data include:
- 28% of firms focus on the Southeast: According to the survey, 28% of respondents planned to focus on the Southeast. Agora’s data supports this, with the Southeast accounting for 42.7% of Q1 projects and 66.2% in Q2 2025.
- Multifamily represents 30% of projects: Multifamily was the primary asset class in the sentiment survey, and Agora’s product data confirms that it represented 30% of projects in the first half of 2025.
- Southwest capital share jumps 10.6%: Respondents in the Southwest were more upbeat than in other regions, with 28% expressing more optimism about fundraising. Agora’s product data aligns, showing a 10.6% gain in capital share from 2024 to 2025.
- Northeast gains 3.7% despite fundraising concerns: In the sentiment survey, 59% of respondents in the Northeast said fundraising was more difficult. Agora’s data tells a different story, showing that the capital raised in the region increased by 3.7% from 2024 to 2025.
Southeast leads in new projects
Both the sentiment report and Agora’s data show the Southeast leads in new projects. Sentiment shows 28% of respondents reported planning to focus on the Southeast, 26% on the Southwest, and 25% on the Northeast. The Midwest drew 22%, and the West 18%.
Agora’s product data also shows the Southeast as the highest region for investment. It accounted for 42.7% of projects in Q1 and 66.2% in Q2, and 30.8% of capital in Q1 and 30.5% in Q2.
Both data points line up with population and economic gains, forecasting the South and West at 6-8% growth compared with the rest of the country.
Multifamily brings in the most capital
Survey results show that 51% of respondents plan to focus on Multifamily. Agora’s data supports this as the top asset class, capturing 31.0% of projects in Q1 and 29.5% in Q2, and 67.6% of capital in Q1 and 30.2% in Q2.
Fundamentals remain strong for multifamily. The U.S. continues to experience a housing shortage, while higher home prices make renting the most affordable option. Higher interest rates also contributed to a 65% cost gap between owning a single-family home and renting an apartment in Q1 2025. This affordability barrier continues to drive demand for rentals.
Southwest sees more fundraising success
Participants across all regions noted challenges in fundraising, but the Southwest stood out for expressing the largest “less difficult” portion. Agora’s mid-year data for 2024 and 2025 supports this, with the Southwest increasing its capital share by 10.6%.
Despite the region’s momentum, fundraising overall remains challenging in 2025, with PERE reporting a 3.6% drop in real estate investments from the top 100 institutional investors.
Northeast gains despite sentiment
In the Northeast, 59% of survey respondents said fundraising felt more difficult. Yet Agora’s data shows capital raised in the region grew by 3.7% from 2024 to 2025.
It’s hard to pinpoint why sentiment and results differ. One possibility is that the Northeast led all other regions in wage growth at 3.4% year over year in January 2025. Another is that New York City ranks first in the country for multifamily absorption with a 39.4% annual increase.
Wrapping it up
The sentiment report and Agora’s data closely align in regional preferences, top asset classes, and fundraising challenges. Use this comparison to inform market direction and consider if matching or countering those moves makes sense for your portfolio.
