Inside the Family Office Shift Toward Real Estate

Real Estate investments are becoming an increasingly popular asset class among family offices. 2025 saw real estate’s share of total family office investment rise to 39%, the highest since 2019.

Fundamentally, real estate assets offer a way to diversify portfolios and fulfil many criteria family offices seek in investment opportunities: long-term wealth preservation, more stable income flows, scalability, tax efficiency, and appreciation. With a focus on multifamily high-potential properties, real estate investment piques philanthropic interest for family offices for whom legacy and meaningful impact are valued. 

At Gilbert Group, our data-driven investment strategies provide clear market insights directly related to real estate success. We understand that for family offices, it goes beyond writing a check; building a robust and diverse portfolio shapes the legacy for future generations. Our multifamily real estate assets offer stable cash flow, low volatility, and a hands-on approach that brings real value and long-term return to family office investments. 

Stability and long-term security

A stable revenue stream is a high priority in all investments, especially for family offices, where investments can have a generational legacy. 

Real estate is a more stable asset class, even during economic volatility. When inflation rates rise, real estate often benefits from improved appreciation and greater market activity as mortgage rates decline. Real estate also has a naturally lower inflation risk, and inflation changes can also give investors flexibility with rent adjustment, acting as a natural hedge to investments.

Furthermore, housing will always be a high-demand necessity. Diversifying a portfolio with real estate assets offers family offices a more stable long-term investment option to complement other assets, even when the market fluctuates.

Building a legacy

At Gilberti Group, we understand the long-term interest of family offices in their investments. A key differentiator of real estate assets is that they are fundamentally less liquid than other asset classes, which is advantageous for family offices looking to build a diverse legacy portfolio. 

Family offices often plan investments with medium- to long-term horizons, spanning 5 to 10 years or longer. This timescale complements real estate investment by allowing scalability strategies, such as renovation and long-term property improvements, to create more stable and generous future assets. Consequently, real estate is now the third most common allocation across family office portfolios.

Tax efficiency incentives 

Real estate assets also have a unique tax efficiency and wealth management advantage. A property will naturally depreciate over time. The IRS accounts for this by allowing investors to deduct “wear and tear” from tax calculations, making a percentage of rental income tax-free.

Further, certain expenses incurred from owning property are not included in taxes; mortgage interest, property tax, management fees, repairs and maintenance, insurance premiums, utilities, and legal and accounting fees are all considered operating expenses.

Under the “1031 Exchange” of the IRS code, investors can defer capital gains tax payments when selling an investment property if they use the proceeds for another property investment. This Tax-Deferred Exchange clause is a powerful tool for growing a real estate portfolio free of up-front tax cost. The deferred exchange could continue for decades, making real estate a desirable long-term investment plan for family offices. 

Capital appreciation and wealth management 

Real estate assets also offer a strong appreciation potential from value-add opportunities such as development and renovation projects. By identifying and deploying operational improvements to multifamily properties, family offices can enhance income cash flow for future appreciation and wealth generation, creating even greater long-term returns.

Gilberti Group targets high-potential multifamily properties to support family office investments and legacy holdings. We focus on structure and scalability, identifying properties with untapped future value and shaping an investment strategy with a clear trajectory for future cash flow enhancements. Our track record proves the power of this approach, and we have consistently strong IRRs across our portfolio. 

A trusted, hands-on approach

Family offices want to understand market trends to be more assured about their investment choices. Even with a more stable asset class like real estate, there is a degree of risk. 

Market insights and analysis can add more transparency and give investors greater reassurance. Gilberti Group takes a data-first approach to investment, harnessing financial modelling and predictive market analysis to create strategies built on disciplined acquisition, rigorous underwriting, precise execution, and proven experience.

The data speaks volumes, and we ensure that our investors have consistent asset reporting for the more hands-on approach that family offices seek in personal and philanthropic investment. By providing greater transparency and building close working relationships, investors have greater ownership of their assets, returning a higher investment value and supporting long-term legacy.