The flagging European commercial property market could be hit by a record €43bn (£31.1bn) of assets put up for sale over the next three years due to a peak in the number of property funds due to close, according to yesterday's Sunday Telegraph.

A survey by the European Association for Investors in Non-listed Real Estate Vehicles showed €27bn of property could be released in one year alone.

Although Inrev says some funds could be extended, with others listed on the public markets, their strategy is likely to be affected by the health of the market. Falling returns in the UK and Europe is understood to be pushing investors to look internationally for better property returns.

The report states: 'The UK appears to have passed the top of the market cycle which might make it more difficult for managers to convince investors to extend a fund or to roll it over.

'In addition some investors in the UK have been heavily invested domestically in single country funds and may now wish to reallocate the capital in order to expand their investments into Europe and outside Europe.'