Europe has seen the biggest rise in capital chasing commercial real estate, according to research by DTZ, with the first rise in equity raisings for two years.
The agent’s Great Wall of Money research found that, with a new global record of $354bn (€255bn) in available capital, Europe pulled level with the US and, at 7%, saw the biggest increase in capital, followed by a 6% rise in Asia Pacific.
The overall $354bn total for the second half of last year is the highest DTZ has recorded since it began tracking capital in 2009.
“New capital remained flat in the Americas, allowing European targeted capital to catch up to same level,” it said, adding that the first rise in new equity raisings for two years reflected a fall in risk aversion.
In Europe, DTZ found a higher proportion (28%) of raised capital focused on core opportunities.
Amost half of new funds currently raising and targeting Europe also have core strategies.
DTZ expects growth in new commitments to slow as a consequence of potential interest rate rises.
Hans Vrensen, global head of research at DTZ, said: “The window of opportunity for well-timed investing in core markets will diminish through 2014 and 2015.
“Therefore, we expect new capital commitments will slow over time.”
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