The amount of money to be raised for investment by unlisted property funds in Europe is expected to fall 41% fall this year, following a drop of nearly a half last year, according to trade body Inrev. The association also warned that funds raised in 2006 and 2007, at the height of the credit boom, would face the greatest difficulties refinancing their debt.

The association, which represents both investors and fund managers in property, said that its fund manager members plan to raise only €6.1bn ($8bn) during 2009, a decrease of 41% on last year. The figure was compiled from a survey of 54 of its fund manager members.