DTZ predicts 22% increase in capital for global RE investment

DTZ Research estimates that $281 bn (EUR 203 bn) of capital will be available to invest in global real estate in 2011, a 22% increase on DTZ's previous estimate in December 2009. However, no increase is anticipated for Europe.

Magali Marton, head of DTZ CEMEA Research, said: 'We expect that the total of amount of available investment capital in Europe to remain unchanged from the 2010 estimate of $112 bn. Although this is a larger share of available capital than Asia Pacific or the US, the Europe DTZ Fair Value Index score of 49 suggests that the attractiveness of Europe to investors remains unmoved from December 2009, with European markets offering similar levels of return.'

'Of the single country funds, the UK is the most targeted country for investment within the region followed by the larger liquid markets of France, Germany, Sweden and Italy,' Marton said. 'With no new increase in available capital targeting Europe we expect there to be less growth in transaction volumes during 2011 relative to other regions. However, the substantial increase in European investment volumes in the first half of 2010 suggests a strong bounce back is already underway, assisted by the recovery in values. With more capital predicted to be generated from outside investment than generated regionally we anticipate a continuation of cross-border investment in Europe.'

DTZ Research's latest 'The Great Wall of Money', due to be launched today, analyses the 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% increase on DTZ's December 2009 estimate. This is in line with the DTZ Fair Value Index score of 89 which shows most markets in the US now offer an attractive opportunity to investors. A further $71bn is targeting the Asia Pacific region, an increase of 29%.