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Global real estate investors have amassed a collective war chest of around $340 bn (€250 bn) which they are expected to commit within the next three years, according to Hans Vrensen, global head of research at DTZ, based in London.


‘This is a record amount of new capital, up 6% on just six months ago,’ said Vrensen, speaking to PropertyEU at Expo Real this week. ‘However, the biggest problem is that there aren’t enough sellers.’

According to DTZ’s ‘Great Wall of Money’ report, published this week, around $120 bn of the total is expected to be invested in Europe (up 6%), compared to $129 bn in the US and $90 bn in the Asia-Pacific region, up 11% from a year ago, according to Vrensen.

‘Over 50% of this capital has a non-core strategy. But it’s like a super tanker: it takes a long time to raise and a while to deploy. However, the commitment period for most funds is around three years, so I would expect most of this capital to be invested by then,’ Vrensen said.

And as property markets move into a new phase, so do deployment strategies, according to Vrensen: ‘We’re in a good position for the next phase of the recovery, with a wider range of opportunities, moving away from prime assets.’