Great Wall of Money heads for US
DTZ Research’s “Great Wall of Money” report says the total amount of capital available for investment in property around the world next year is 22% higher than at the time of its previous estimate of December 2009. But within this total sum, DTZ says the greatest increase has been in the amount of capital focused on the US – at US$97bn out of a total US$281bn, this is a 54% increase.
DTZ says its Fair Value Index supports this data – it shows that most markets in the US now offer an attractive opportunity to investors – but by contrast the amount of capital targeting European markets is unchanged from December 2009 at US$112bn. A further US$71bn is targeting the Asia Pacific region, up 29% from the previous estimate. Transaction volumes are expected to pick up overall in 2011, with US volumes forecast to rise more substantially than in Europe or Asia.
Within Europe, DTZ says the UK is the most targeted country for investment, followed by the larger liquid markets of France, Germany, Sweden and Italy. “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,” noted Magali Marton, head of CEMEA Research at the group.
“With more capital predicted to be generated from outside investment than generated regionally, we anticipate a continuation of cross-border investment in Europe,” DTZ added.
