Global Real Estate Fundraising Slumps 71% With Rate Risk
- Global investors taking ‘wait-and-see approach,’ Preqin says
- Slide in building valuations also hurts potential for returns
Property markets around the world are in turmoil as interest-rate hikes have increased the cost of borrowing.
Photographer: Michaela Nagyidaiova/BloombergThis article is for subscribers only.
Private real estate fundraising plunged in the third quarter as higher interest rates cooled investor appetites for risk.
Around the world, $18.2 billion was raised by 61 funds in the three months through September, a 71% decline from the second quarter, when 117 funds raised $63.4 billion, according to a report by Preqin. It was the slowest rate of fund closures in the present cycle of interest-rate increases, the research firm said.