While the net disinvestment was small, DTZ said it is evidence of caution in the market. The fall in equity prices over 2000 and 2001 meant that some funds were technically in breach of their asset allocations towards property and were forced to stop buying property.

Mike Cutteridge, Head of Investment at DTZ said: 'This fall in investment demonstrates some caution by investors which, in the light of the current economic climate, isn't at all surprising.' But he said that in the longer term he expected property investment to resume. 'Funds are attracted by the income stream from commercial property which is likely to remain stable and high for the foreseeable future,' he said.

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