New York, London take top spots in growth city ranking - EXPO REAL

New York attracted the most commercial property investment during the last year, as the global real estate investment market saw volumes increase by 16.7% to $649 bn, according to Cushman & Wakefield’s annual Winning in Growth Cities report launched on Tuesday at the Expo Real trade fair in Munich, Germany.

London remains by far the most favoured market for international investors with a 13% market share (US$22.4 bn) against 4% for Paris and 3.6% for New York.

The top 25 global cities saw their market share rise from 53% to 55% over the year to June, with volumes ahead by 20.7% compared to a 12.1% rise in the rest of the market.

However, while this group of cities continues to be favoured by investors for their low-risk qualities, there may be signs that this heavy focus on core global cities is starting to waiver as investors seek new opportunities. The market share of the largest 25 cities is down from 58% in Q1 2013 to 50% in Q2 2013, according to the report.

Cushman & Wakefield’s executive chairman Carlo Barel di Sant’Albano commented: 'Most indicators suggest property demand will both increase and broaden to embrace new markets and a higher share of investment will be cross-border as investors increase their risk tolerance. Assuming the US recovery continues to gain traction helping confidence and growth across all economies, we anticipate that next year will be favourable for much of the market as stimulus measures and recovery spark an appreciation in capital values for good quality space with strong occupier demand.'

The make-up of the top 25 cities has changed little from last year, with Beijing and Stockholm dropping down the list and Denver and Frankfurt moving up as US and German cities outperformed.

Paris was the main faller in the top 10 – from fourth last year to eighth position this year – due to a drop in larger deals.