Asia Pacific investments to double in 2010
eal estate investments in the Asia Pacific region are set to hit US$85 million in 2010, almost double the amount invested in 2009, according to DTZ.
DTZ´s research found that out of the $315 billion capital currently targeting real estate, 27 percent or $85 million, has been targeted for the Asia Pacific region.
This is almost double the $43 billion of capital transacted in the last 12 months.
“Regional investment patterns are expected to continue in line with 2009 trends, with 27 percent of capital targeting investment in Asia Pacific,” says David Green-Morgan, head of research for DTZ Asia Pacific.
DTZ´s research also found that the $315 billion capital available for investment in real estate globally in 2010 is double the $157 billion of capital transacted in the last 12 months, with the ratio of capital targeting real estate now at 2:1.
This is equivalent to $2 of capital chasing available stock compared to only $1 in the last 12 months.
“Asia Pacific and Europe are both relative winners, with more money targeting these regions for investment than they are raising and investing elsewhere,” says Morgan.
Europe took the biggest market share with 50 percent of the capital targeted for the region.
Collectively, Asia Pacific and Europe are targeted for 77 percent combined of the total investment in 2010.
However, DTZ said only 49 percent of the available money for both regions have so far been raised.
DTZ also said there are two main categories of investor for 2010, namely third party managed funds and institutions.
The third party managed funds are the largest category of investor comprising 60 percent of the market share while institutions make up 28 percent.
DTZ´s research was based on an analysis of data generated by its equity tracker, which covers capital-raising globally from a range of investor groupings.
Property Report
16 December 2009
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