The total stock of UK invested property fell by 3% in 2012 as a result of further deleveraging in the real estate market, according to DTZ's latest Money into Property report.
This marks a decline of 7% from its pre-crisis peak in 2007.
DTZ's research shows a shift in the real estate market, with a reduction in debt, which fell by 6% last year, and an increase in equity, which grew by 1%.
The change is due to the continued retreat of banks from the lending market, according to Nigel Almond, director of research and strategy.
"The continued reduction in debt secured by commercial property reflects the ongoing deleveraging as the UK market adjusts to a tighter credit environment and banks continue to write down their legacy lending book," he said.
Non-bank lenders' share of the market grew by 35% in 2012, compared with a 17% increase in 2011. Alternative lenders such as pension funds and life insurers currently account for 8% of all real estate lending.
UK investment volumes picked up by 6% to £32bn in 2012, although this activity was heavily concentrated in London.
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