Private equity real estate fund-raising around the world has fallen to its lowest level since 2003, new figures by London-based research firm Preqin show.

Some $5.2 billion was raised by 20 closed-end private real estate funds at the end of the first quarter of this year, a 79 per cent drop from the final three months of 2012 and the lowest quarterly total since the end of the third quarter in 2003, Preqin said in a statement.

Funds that closed in first quarter spent an average of 18.7 months in market, more than double the average of 9.2 months that funds closed in 2007 spent in market, according to Preqin.

"While there is a degree of momentum in the fundraising market, it remains very hard for managers to hold final closes for their funds. Although investor appetite for private real estate funds has increased in recent months, competition for limited partner commitments remains intense and fundraising for most managers is a long, difficult process," said Andrew Moylan, Preqin's head of real assets products.

Boston-based Rockpoint Group raised $1.95 billion, the largest closing fund of the quarter, Preqin said. This was followed by New York-based Prime Finance Partners, which raised $621 million.

Funds with a primary focus on North America raised the most capital with aggregate commitments of $3.7 billion. Five Asia-focussed funds raised $776 million, while three Europe-focussed funds raised $756 million.