The scarcity of debt is the biggest threat to the recovery of the European property market, a survey by CBRE has shown.

Around 30% of 340 property investors polled said constraints on the availability of debt was their biggest concern.

The survey, which was taken in February, also showed major concerns over a “double dip” economic recession and the breaking up of the Eurozone.

Other concerns included government austerity policies, the perception that property had become over priced and forced sales by the banks.

Peter Damesick, EMEA chief economist at CBRE, said: “A year ago fears of a “double dip” recession had eased, although property investors were still concerned about weak occupier demand.

“The escalation of the sovereign debt crisis and deteriorating growth prospects in Europe have clearly changed sentiment significantly over the past 12 months.

“However, the single biggest perceived threat to property market recovery is still investors’ inability to source new debt and this is significantly affecting investment activity in Europe, particularly outside prime/core markets.

“The majority of investors who favour opportunistic, value-add or distressed assets reported debt constraints in the survey.

“Investors facing debt constraints are also less likely to increase their purchasing activity in 2012 or to be net investors.”

Philip Cropper, managing director of real estate finance at CBRE, added: “Across Europe, we are seeing continual signs of lender caution. Banks which are actively lending remain focused on prime assets in key markets and terms on offer often vary widely depending on the borrower.

“While institutions such as Axa and MetLife have made very encouraging announcements in recent weeks, their increased presence will only go so far to replace the supply of debt lost through the withdrawal of a number of established lenders to the real estate market. However it is also worth noting that, in late 2011, CBRE recorded that insurers offered, on average, the most competitive lending terms.”