London tops cross-border investment league: C&W

London emerged as the biggest cross-border investment market worldwide in the 12 months to end-June 2012, according to Cushman & Wakefield’s latest Winning in Growth Cities report which examines investment opportunities for commercial property in growth cities across the globe. The UK capital took a 92% lead over the second placed city Paris.

In terms of overall investment, New York topped the ranking for the second year running with a 18.9% rise in volumes to $34.7 bn (EUR 26.8 bn), up 18% on London which saw 3.8% growth. New York also remained the most most prominent multi-family investment market while Los Angeles was top for industrial, Shanghai for development sites and Hong Kong for retail.

The top 25 cities globally took an increased share of the market, but competition is set to grow once recovery gets hold, the report notes. Investors are seeking markets which deliver liquidity and growth potential on the one hand, and transparency, income stability and investment security on the other. ‘This has translated into a continued heavy focus on mature, core, liquid markets. For example, the top 25 cities have continued to increase their share of total investment - now averaging 56% versus 46% back in 2009,’ it says.

Across the top 25 cities, 23 are classed as mature and two (Moscow and Shanghai) as emerging.

Although the hierarchy of global investment cities has changed little in recent years, differing patterns of growth, a levelling playing field on regulation and forces pushing against agglomeration (such as new technology and the battle to reduce pollution and energy use) could introduce a stimulus for faster change in the future, the report says.