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Real estate fund fundraising falls to historic lows

Closed-end real estate funds raised $81.7B in the first half, a third-lowest total in more than a decade, and the number reaching final close dropped 60% to 95.

Reported · Written up by our desk · Industry

Investor appetite for real estate has been muted this year, leaving fundraising at historic lows, according to a report cited by Bisnow.

Closed-end real estate funds raised $81.7B in the first six months of the year, the third-lowest half-year total in more than a decade, with capital raised slipping 5% year over year, the outlet said. The number of funds reaching final close fell 60% to 95.

Bisnow also reported that fund launches scaled back, with 276 funds launched targeting $74.3B in commitments, the lowest amount. It attributed the weaker fundraising environment to heightened geopolitical volatility, macroeconomic uncertainty, and high borrowing costs, citing a statement from Igor Pakovic of With Intelligence.

The report said the challenges weighing on fundraising in recent months have become more pronounced into 2026, and noted that broader hard-asset exposure is drawing more institutional interest.

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