Property capital boost
DTZ Research is predicting a 22 per cent increase in available capital for global real estate investment next year to $281bn. Nick Allan, investment director for the Midlands and South West, said: "We have experienced increased investor appetite for prime city centre stock."
The latest DTZ Great Wall of Money report analyses capital being raised by an extensive range of investor groups.
The greatest increase in available capital is forecast to be focused on the US ($97bn) representing a significant 54 per cent increase on DTZ's December 2009 estimate. A further $71bn is targeting the Asia Pacific region, an increase of 29 per cent. But the majority of available capital continues to target Europe ($112bn), which is unchanged from the December 2009 estimate.
Allan said: "Since our last Great Wall of Money report in December 2009, we have experienced increased investor appetite for prime city centre stock. Heightened levels of demand, primarily from UK institutions, prevailed until this summer.
"Since then, there has been a notable decline in enquiries from UK institutional investors. However, some of this has been redressed by the re-emergence of interest from overseas investors in the regional markets, including the German open and close ended funds, who have started to move their attention beyond London as this market has become overheated for a number of them.
"Moreover, we have started to see a number of sovereign state and Far Eastern investors enter the regional markets, especially for trophy assets. Likewise, a few UK property companies are also seeing regional markets as offering value and demand for investment stock has started to grow again from this sector."
