LONDON, Jan 17 Reuters Nearly half of investors in Europe plan to cut their real estate allocations, according to a survey by trade body INREV, as a slide in valuations driven by higher borrowing costs and emptier offices continues.

Fortythree percent of European investors intend to reduce their property allocations over the next two years, INREV39;s survey of 90 respondents globally with 830 billion euros 902.63 billion in assets under management found.

The reading compared to 37 of European investors surveyed who planned to cut allocations the prior year in 2023, according to INREV, which is the European Association for Investors in NonListed Real Estate Vehicles.

European investors are the most bearish, Iryna Pylypchuk, director of research and market information at INREV, said.

It is those with the higher allocations to real estate that are affected the most, she added, saying some of the allocation reductions could be met by prices correcting lower rather than through tricky asset sales.

Nearly a third 32 of investors in North America also intend to cut real estate allocations over the next two years, the survey found, while no respondents intended to do so in Asia Pacific.

Within Europe, Britain rebounded to become the region39;s preferred destination for real estate investments after a sixyear absence at the top of the rankings, Pylypchuk said, adding the country had seen significant repricing of properties already, relative to the continent.

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