Decline in capital targeting real estate

Arrow_downThe sum of money allocated for investing in real estate investment markets in 2012 declined 4% in the first six months of the year to $316 billion (€233 billion), according to data from DTZ Insight.

Although money targeting the Americas rose, this gain was more than offset by a 12% decline in money targeting Asia-Pacific investments and a smaller decline in Emea-targeted capital.

DTZ said it does not expect to see much new capital raised in the near term and warned that the sum of available capital could decline further if current uncertainty in the economy persists.

The survey found that more than half of funds are now focusing on a single country, a change from 2007 when 70% of funds aimed to spread the investments across several countries. “This is reflective of sentiment post crisis where people prefer to invest in a particular market that they know,” said DTZ.

©2011 funds europe