Wall of capital targeting Europe rises 6% in six-month period: DTZ

Available capital for investment in commercial property in 2014 is up 6% from six months ago, according to the latest edition of the Great Wall of Money report by international brokerage DTZ.

The research estimates that there is a record $340 bn of available capital for investment in commercial real estate globally during 2014. The report is based upon DTZ’s analysis of data from nearly 3,000 individual funds.

At 11%, Asia-Pacific posted the strongest regional growth in available capital, with over $90bn targeting this region.In Europe, available capital increased 6% to $120 bn despite the weak economy. But, the Americas remained the largest target region with nearly $130 bn available in 2014.

A higher proportion of raised capital (55%) is now targeting a single country, up from 53% six months ago. Of the single country targets the US maintains its dominance representing 44% of capital. China and the UK are the next main focus, with a 9% share each, in line with six months ago. Elsewhere in APAC, Japan continues to attract a strong level of capital (6%) as funds continue to be attracted by the recovery and improving liquidity in the Japanese market.

Commenting on the research, Hans Vrensen, Global Head of Research at DTZ, said: 'With bond yields remaining low, most global property markets offer historically attractive relative returns. DTZ Research’s Fair Value IndexTM indicates historically high scores across regions of 75 or above indicating that the majority of markets are attractive. This attractiveness has helped funds raise an additional $24 bn in fresh capital over the last six months.'