Global real estate investment hits $600bn

Real estate investment transactions worldwide hit a record high of $600 bn (EUR 447 bn) in 2006, according to the new edition of DTZ's annual Money into Property research report. DTZ's research report examines record cross-border capital flows in 2006 and indicates that even more capital is looking to be invested in 2007. The real estate market is still characterised by a surplus of capital. At present there is $4 of capital chasing every $1 of investment product. DTZ estimates that there is $2.4 tln looking to be invested in real estate worldwide. The proportion of investors below their target real estate allocation grew from around a third in 2005 to half in 2006. Indeed, about 30% of capital raised over the last two years remains unspent.

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