Property funds have raised a record $67.5bn (€47.1bn) this year despite the US sub-prime crisis, which has clouded the outlook for the UK real estate market and yesterday forced insurer Friends Provident to halt fund withdrawals.

The number of funds raised was slightly down on last year - 100, as of December 19, as opposed to 108 last year, according to figures from investment analysis firm Preqin. However, the research company said the totals were likely to rise as several more funds were due to close before the end of the year.