The real estate fundraising market has become "extremely crowded", according to data provider Preqin, as private property funds seek to raise the equivalent of three years' worth of cash.

In a report published this month on fundraising by closed-end real estate funds, Preqin said the number of new funds in the market continues to rise despite the difficult environment. The amount currently being sought is $165bn, the equivalent of more than three years' worth of fundraising, as measured by 2011 levels, the firm reported.