The value of the global market for investment-grade real estate will increase by +5% to $11.4 trillion in 2010 as weak economies rally, repairing confidence of indebted property investors and lenders, according to property advisor DTZ’s Money into Property report.

The report said that legacy refinancing problems wreaked by the collapse of a debt-fuelled property boom ‘were not as big’ as originally feared, sparking a surge in available equity capital.

Hans Vrensen, global head of research at DTZ, said: “Last year was a tough year for real estate markets worldwide and saw the value of global invested stock decline by -6%. We expect to see a return to growth in invested stock value this year, in line with the consensus macro-economic forecasts for a sustainable economic recovery worldwide.”

DTZ believes that the worst of the global real estate slump is over and 90% of 172 markets it covers represented ‘fair value’ for buyers. Eight of these markets are in the UK, 70 are in Continental Europe, 32 are in the US and 41 are in Asia Pacific.

According to DTZ, there is an improvement in lender sentiment towards property. Two thirds of lenders surveyed by DTZ said they expected to increase gross new lending this year and in 2011, marking a sharp swing in confidence from last year when half the lenders questioned said they expected to cut gross lending in 2010.