Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

AMSTERDAM-Investors and fund managers think it unlikely that the property market will have improved by year-end, out of line with expectations at end-2008, according to the latest survey by the European real estate funds association INREV.

Despite this subdued confidence in the short term, the long-term outlook is positive, with 94% of respondents expecting the market to improve in five years' time. Investors also still consider real estate as an important part of their multi-asset portfolio. INREV CEO Lisette van Doorn said: "What we see is a difference in the rebound between the different real estate asset types. Listed real estate is already experiencing considerable capital inflows and the same applies for direct real estate. Non-listed property funds are trailing the other real estate types in the property cycle. Since the beginning of this year they have only attracted 14% of the equity committed to real estate.

"However, investors are considering commitments into non-listed property funds, as there a considerable number of new fund launches and existing fund investment opportunities in due diligence. This may indicate that investors are anticipating opportunities to emerge for non-listed funds not too far in the future."