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Deals & Dealmakers

Report: RE investment capital at $435b in 2017, second-highest since 2009

The amount of new capital available for global real estate investment in 2017 stands at $435 billion – a small drop on last year’s peak but the second-highest figure recorded since 2009, according to research from Cushman & Wakefield.

The Great Wall of Money report series tracks the amount of newly-raised capital, including debt and equity, targeting real estate at a global level.

The total global wall of money has fallen by two percent compared with 2016, the first drop since 2011.

However, current levels are the second highest on record, reflecting the rise in capital targeting the sector this cycle.

Capital targeting EMEA shrunk nine percent in US dollar terms to $130 billion, whilst the Americas grew to $173 billion and Asia posted a marginal increase to $132 billion.

Elisabeth Troni, head of EMEA Research & Insight, Cushman & Wakefield, said: “We expect 2017 to be marked by ongoing competition to place capital and source attractive opportunities.

“While core real estate strategies remain highly attractive, demand tends to outstrip supply in many key markets, pushing down yields and challenging investors. Unable to find enough existing core assets, investors are engaging in ‘build to core’ strategies targeting development or redevelopment projects that create core assets in top markets.

“In addition to new investment strategies, we expect new sources of capital to be unlocked around the world with countries such as China, Malaysia, Taiwan and South Africa to the fore.”

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