There is a growing nervousness among consumers about investing in property, with four in 10 people saying it is a bad time to put money into bricks and mortar, a new survey suggests.

Research commissioned by Standard Life shows rising interest rates and uncertainty about Irish property prices are weighing heavily on investors' minds, with 38 per cent saying it was a bad time to make a buy-to-let investment and 4 per cent believing it to be a very bad time.

Overseas property investment was also considered a bad idea by 30 per cent of the 1,011 people questioned for the survey.

Only 22 per cent said they thought it was a bad time to invest in shares, while the survey also uncovered massive support for pensions, with four out of five people saying it was a good time to start planning for retirement.

The Standard Life survey, the first in a quarterly series on attitudes to investment assets, is backed up by research from Merrill Lynch, which shows that although globally investors are increasing their allocation to real estate, Irish investors are taking steps to reduce their exposure.

"Last year, we were beginning to see the smart money moving away from real estate. I would say that the trend is more pronounced this year than last," said Nick Tucker of Merrill Lynch's UK and Ireland business.

"It is still at the very early stages and we are not forecasting a crash in property prices but investors are moving into private equity, structured products and hedge funds."

So-called ultra-high net worth individuals - people with assets of more than $30 million (€22.2 million) - are steering clear of new property investments, he said.