New York retains its crown as the world’s largest real estate investment market for the fifth consecutive year, according to Cushman & Wakefield’s Winning in Growth Cities report published at Expo Real on Monday.
New York retains its crown as the world’s largest real estate investment market for the fifth consecutive year, according to Cushman & Wakefield’s Winning in Growth Cities report published at Expo Real on Monday.
The report shows that global property investment rose 16% in the year to June ($943 bn or €844 bn) and now stands at its highest since 2008, just 13% below the pre-crisis peak. This is despite increased stock market volatility, uncertainty of events in China and the Middle East as well as the approaching return of US monetary tightening.
The 25 gateway cities ranked in the C&W report increased their share of the total from 51% to 53% in the 12 months.
Fourteen of the top 25 are in the US, the fastest growing target for foreign capital. Three US cities feature in the Top 5: New York strengthened its number 1 position to $75 bn, up 36% on the previous 12 months; Los Angeles ($37 bn, up 14.4%) and San Francisco ($32 bn, up almost 36%).
London was again the second largest market overall ($55 bn, up 13.4%) but top for foreign buyers. Tokyo retained its number three spot despite very limited growth ($38 bn, up 0.7%).
Comment
Report author David Hutchings, head of EMEA Investment Strategy, Cushman & Wakefield, said: 'Despite the strong overall growth and the major gateway cities remaining largely unmoved, change is more evident at regional levels.
'Europe is still a magnet for capital from all regions but North America has actually been the fastest growing target for foreign capital – a fact reflected in the dominance of US cities in this year’s report. Fourteen of the top 25 cities are in the USA, while Germany, the second most popular country by number, has just three cities making the list. Investment into these US cities grew by 32% compared to just 7% growth for non-US cities in the top 25.
'Outward investment by US players is also dominating global capital flows, accounting for 42% of all foreign investment between regions in the past year and growing by 25%. Asian investment globally comes in at number two, with a 25% market share, as investors’ search for greater global diversification has, if anything, been accelerated by fears of a regional slowdown but has also become more focused with the US a notable winner.”
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