Private real estate fundraising increased in 2025, marking its first annual gain since 2021, according to BisNow.
Fundraising Is Up—but Still Below Peak
Global funds raised $172 billion in 2025, a 13% increase from the year before. Even with the gain, totals are still well below the highs seen in 2021 and 2022, and a sharp rebound isn’t expected.
High Borrowing Costs Are Holding the Market Back
Interest rates continue to limit activity. The 10-year Treasury yield has stayed above 4%, keeping real estate financing expensive and making investors more cautious.
Because of that, most money is flowing into higher-return strategies like opportunistic deals, value-add projects, and debt—areas better suited to a high-rate environment.
Big Firms Are Getting Most of the Money
The largest real estate funds are continuing to capture the bulk of investment. The top 10 funds raised $68 billion last year, while smaller and newer managers struggled to compete. In fact, just two newer firms made up more than half of the capital raised in that group.
Banks Are Pulling Back From Real Estate Loans
Banks still hold a large share of commercial real estate loans coming due, but they are starting to reduce their exposure. That could make financing harder to access in the coming years.
