Get in touch on 0845 301 5544
or email at info@estatesgazette.com

MIPIM 2011: More money for global real estate this year

 

About $329bn (£202bn) of capital will be available to invest in global real estate this year – a 17% increase on previous estimates in mid-2010.

 

Research from DTZ shows that this is mostly the result of a growing number of funds targeting the Asia Pacific region, with available capital up 45% to $104bn.

 

However, the amount of available capital targeting the EMEA region has remained relatively similar, with a 2% increase to $114bn.

 

The company’s latest Great Wall of Money report launched at MIPIM today analyses new capital targeting direct real estate.

 

Of the capital targeting single countries, the US continues to attract more than half the available capital.

 

The UK is the second most popular single country target, attracting 10% of available capital, a reduction from previous quarters.

 

Nigel Almond, associate director of forecasting and strategy at DTZ and author of the report, said: “The latest report findings show that many investors remain focused on their more familiar, home country or regional markets.

 

“This is particularly true in Asia Pacific and EMEA, where 92% and 81% of capital targeting the region has been raised locally.

 

“America bucks the trend with only 36% of funds directed towards the Americas.

 

“We also see that the majority of funds continue to target multiple property types, highlighting the need for flexibility in deploying capital.”

 

The report also shows that once again, third party managed funds account for the majority of available capital, with a 56% share of activity.

 

Publicly listed companies now represent 20% of raised capital reaching $71bn, more than double the $33bn previously available.

 

nathan.cross@estatesgazette.com

 

To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.

EGi publishes more news articles online than any other UK commercial property service.

Find out more about EGi News.