Asian real estate investment soars to €72b in 2014

Asian cross-border real estate investment reached $77 bn (€72 bn) in 2014, according to Colliers International's latest global capital flows report 'How long will this property bull market last?'

In 2005, Asia was a limited source of capital for property investment, with no single Asian market reaching the top 10 international funding pools. Total cross-border investment amounted to a modest $8 bn, with Singapore accounting for almost three-quarters.

The huge growth over the past decade occurred through a geographical diversification of sources, the report said. In 2014, Hong Kong ($29 bn) and Singapore ($20 bn) continued to contribute substantially to cross-border property investment, but China ($17 bn), South Korea ($3.7 bn), Malaysia ($3.2 bn), India ($2.2 bn) and Taiwan ($1.8 bn) began to make significant ripples of their own.

In percentage terms, Asian capital accounted for around 13% of cross-border investment in 2007 which increased to 30% in 2014. These percentage figures are possibly flattered, however, by a disproportionate drop in the volume of European cross border capital, a consequence of eurozone economic uncertainty and a calculated retreat to domestic only strategies after cross-border losses
incurred in the downturn.

Decreases in US capital are also observed between the 2007 peak ($90bn) and 2014 ($67bn).

Full report
How long will this property bull market last

PropertyEU TV interviews on YouTube
Walter Boettcher, director of Research and Forecasting at Colliers International discusses the report
Susheela Rivers, DLA Piper: Asian real estate capital looks beyond core cities and core assets