Global property investment activities were at the highest level in 2017, setting up a new point of reference for international real estate investors.
The latest Cushman and Wakefield’s Global Investment Atlas reviews international investment patterns from 2017 and anticipates market performance for the year ahead.
The 2018 edition has had some surprises in store as it shows the highest level of real estate investment on record with a total of US$1.62tn compared to US$1.43tn in 2016 and anticipates a further improvement in 2018.
Who was the most active?
The 2017 highest performer was Asia with the region accounting for more than 50% share in the global property investment volumes with Chinese investors being the strongest buyers overall.
What were the targets?
International investors from Asia were a formidable force in most global property markets apart from the USA. According to the report, there was a whole range of factors responsible for North American fall, including the stage of the market cycle and uncertainty over President Trump’s policies.
Instead, Asian investors turned their eyes towards Europe where investment from Asian sources grew by 96%. This growth was mainly driven by numerous large-scale transactions connected to China’s Belt and Road initiative.
Despite the fall in the overall figures, the USA has retained its position as the most attractive property investment destination.
As to the top 25, European countries, as usual, had the strongest representation, with the UK, Germany, Spain and the Netherlands following the U.S. However, when including development land, China was re-established as the most targeted country for the first time in four years.
Which cities were most targeted?
No surprising champion here: London was in the lead despite Brexit uncertainty as the global investors hastened to use Pound weakness.
The runner-up, however, was a surprise: Madrid, previously an outlier, moved up 45 places to the second place. Amsterdam took the bronze while last year’s number 2, New York, dropped to 6th place.