Sept. 28 (Bloomberg) -- Investors are scaling back bets on real estate, deterred by concerns about a global economic slowdown and as funds run out of time to allocate the money they have raised, a study by DTZ Group Plc showed.
Money earmarked for real-estate investment globally through 2012 fell to about $316 billion from $329 billion six months ago, according to the study by the London-based adviser. While investment targeting property Asia and Europe fell, there’s been a 3 percent increase in funds targeting U.S. real estate since March to $114 billion, the report showed.
The euro region’s 18-month sovereign-debt crisis and concerns about a recession in the U.S. are slowing growth around the globe, reducing the potential for a rise in property values and rents. About $166 billion pledged by investors to real- estate funds since 2008 will be withdrawn after asset managers struggled to find opportunities to spend it by a set time, DTZ estimates.
“The current economic uncertainties are likely to impact on new capital raising for some time to come,” DTZ’s Global Head of Research Hans Vrensen said in the report.
--Editors: Jeff St.Onge, Ross Larsen.
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