According to MoneyTransfers.com, only $50bn dollars were raised by real estate funds in 2022, about one-third of the amount raised in 2021. The main reasons for this decline are due to global issues, including supply-chain obstructions and high inflation, which are negatively affecting planned construction projects.

Commenting on the report, MoneyTransfers CEO Jonathan Merry said: “The global real estate market is slowing down and this is reflected in the fundraising figures. Investors are becoming more cautious as they see other asset classes decline in value. However, it is not all doom and gloom for the real estate market. Despite the challenges, there are still opportunities for those willing to take a risk. There will always be a demand for housing and office space, so there is potential for growth in the long term.”

Europe and Central America have recently seen a rise in houses for sale. The reason behind the surge is investors try to avoid refinancing at a higher interest rate. Meanwhile, sellers are willing to take a current 10% to 15% pricing cut rather than facing even higher reductions in six months’ time.