The amount of new capital targeting commercial real estate globally grew a record 15% in the first half of 2014 to reach an unprecedented level of $408 bn (€324 bn), DTZ is due to reveal today on the opening day of EXPO REAL 2014.
The amount of new capital targeting commercial real estate globally grew a record 15% in the first half of 2014 to reach an unprecedented level of $408 bn (€324 bn), DTZ is due to reveal today on the opening day of EXPO REAL 2014.
This is the highest on record since DTZ started its Great Wall of Money analysis in 2009. The unexpected increase in global capital confirms that investor consensus is now aligned with the DTZ Research view that investment opportunity is time limited across most markets.
During the first half of 2014 there was a 36% increase in capital from listed property companies globally, led by growth in Europe and Asia Pacific, according to DTZ's 10th bi-annual Great Wall of Money report. The report will be presented today during a press conference at Expo Real.
The capital targeting Europe grew by 11% to $142 bn, but overall Asia Pacific recorded the biggest growth, up 21% to $117 bn. The Americas now attracts the greatest amount of new capital at $149 bn, up 16%.
But Hans Vrensen, global head of research at DTZ, cautions that investors have a limited window of opportunity. 'Interest rate increases will reduce the attractiveness of property across many markets. Therefore, investors should move now before this happens. We can also see this record increase in available capital over the last six months as confirmation that investor consensus has now aligned with our own views on this limited window of opportunity. '