Real estate capital raised by global funds fell to a five-year low to $29 billion at the end of the second quarter, from $46 billion in the first quarter and $38 billion in the second quarter of 2018, according to data released Wednesday by Preqin.
Funds focused on somewhat riskier strategies raised the most capital, with opportunistic funds gathering $10 billion in the second quarter and value-added funds raising $9 billion.
There are currently 797 real estate funds seeking to raise a combined $253 billion, up from 634 funds with total fundraising targets of $219 billion in the year-earlier quarter.
Slightly more than half, 52%, of real estate investors surveyed by Preqin indicated they are planning to make a single new real estate fund commitment in the next 12 months, up from 37% in the second quarter of 2018. However, investors plan to commit less capital, with 54% planning to commit less than $50 million, an increase from 45% in the year-earlier quarter of 2018.