Retail Investors Pull $13 Billion From Property Funds in Europe

Retail investors are continuing to pull money from European real estate funds as rising levels of defaults and higher interest rates limit the attractiveness of the industry.

Mom and pop investors yanked €11.44 billion ($13 billion) in the year through March from products domiciled in the region, according to data compiled by Morningstar Inc., 20% more than in the previous 12 months. Monthly euro-denominated real estate fund flows have been negative since February 2023, said the data provider, which tracks open ended and exchange traded products.