Fundraising activity started the year with a bang as 23 funds wrapped up their marketing efforts in the first quarter with an aggregate $21.7 billion, according to data collected by the Institutional Real Estate FundTracker database. It is the highest first quarter total since 2008 when fund sponsors raised $25 billion. The first quarter 2014 volume dwarfs the totals recorded during the same three-month period in recent years: $8.1 billion in 2013 and $11.9 billion in 2012. In addition, the quarterly volume is a strong follow-up to the fourth quarter 2013 total of $26.8 billion, and it marks the third consecutive quarter that investment managers have raised in excess of $20 billion.

The data also indicates the tide has shifted and waves of capital are now flowing to Europe, where value-oriented investors are banking on improving economies to bolster property fundamentals and generate healthy returns. Funds focused on property markets in Continental Europ