Global investment capital raised for commercial property has hit a post financial crisis high of US $429 billion according to DTZ.
The capital by five per cent in the six months ending in March, supported by increased equity raisings, but was down on the 15 per cent growth in new capital raised during in the middle of last year.
Nigel Almond, the head of capital markets research at DTZ, commented that the company expects demand to “drive higher volumes of activity across all regions.”
The US led the growth in new capital, where funds grew by a rate of 12 per cent to $US166 billion. A further $US122 billion was raised for Asia Pacific investment, and $US141 billion was raised to be spent in Europe, Africa and the Middle East.
The report indicates that 71 per cent of funds will be invested across multiple asset classes. Industrial and retail assets were the most popular classes, but around 14 per cent of funds are actively targeted at assets in niche sectors where specialist market knowledge provides a distinct advantage.
A rising number of funds are looking to invest across several countries; however, a single-country strategy remains the most popular. The United States is the single most popular destination, followed by the United Kingdom and China.
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