Demand for European real estate continues to grow, in particular for larger transactions offering the potential to cut costs.

The amount of money available to close-ended funds looking to invest in European real estate has risen to a record $72bn, $16bn higher than at the end of last year, data from Preqin shows.

Patricio Palomar, a director at CBRE, said sellers were bundling assets to attract a higher price. The average European property portfolio attracted a price of €204.6m in Q1, the highest level in nine years, research by Real Capital Analytics showed.