Investors Pull €1 Billion a Month From Europe’s Property Funds
- Net flows have been negative for 11 months, Morningstar says
- Many open-ended funds face pressure to sell assets: Savills
The outlook for commercial real estate is expected to improve later this year.
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Retail investors are pulling more than €1 billion a month from real estate funds in Europe, with slumping demand and a surge in borrowing costs raising concerns about commercial property valuations.
The redemptions meant total net assets held by European open-ended and exchange-traded property funds fell more than 10% to €180.7 billion from December 2022 through the end of last year, data compiled by Morningstar show. Outflows have now been recorded for 11 months in a row as the end of cheap money made the asset class less attractive.