Wall of money: How is the bulwark of capital waiting to be invested in core European markets coping with fierce competition and record-low yields?

It’s tough out there. Intense competition for limited supply in core markets continues to drive returns down.

Savills Investment Management has said that prime yields in European real estate are set to move lower over the next year. In a report, Savills has said that recent volatility in the bond market and stretched equity market valuations have reinforced the case for real estate investment. But investor risk aversion, together with the expectation that Europe is in no hurry to raise interest rates, has resulted in a renewed investor focus on prime real assets in core markets.

Added to the mix is a wall of capital wishing to move into those very same markets. A survey run by INREV, ANREV and PREA has found that 56 percent of global investors plan to increase their exposure to real es