Asian investors are increasing their investment overseas, according to research by CBRE.
Outbound investment by Asian investors totaled $16.2bn (€12.3bn) in the first six months of the year – a 40% increase on the same period in 2013 according to the agent’s Global Real Estate Market report. CBRE expects full-year 2014 investment to surpass 2013.
Singaporean and Hong Kong investors, the report said, continue to have a “strong presence” in global investment markets. Singapore overtook China in H1 to become the largest source of Asian outbound investment – driven overseas by domestic yield compression and a lack of suitable assets.
CBRE said it had noted more interest in continental Europe and US West Coast cities such as San Francisco and Los Angeles. New York and London remain top markets for investors.
Asian investors, it added, are more willing to move away from gateway cities.
Marc Giuffrida, CBRE executive director of global capital markets, Asia, said “early adopters” of global investing were now starting to evolve their strategies to include new markets and assets classes.
“While London’s volumes are lower than the same time last year, we are seeing more capital extend into UK regional areas and Europe, where investors feel there is less competition and the potential for enhanced yields,” he said.
The top five cities targeted for investment, he added, now make up a smaller portion of the total – particularly London.
“This really highlights how diversified global capital markets are becoming,” he added.