Despite geopolitical uncertainty and a slowing in the economic cycle, investment in the global property market has seen a significant rise of 18% year-on-year to a new record high of $1.8tn (2017: $1.5tn), according to research out today from Cushman & Wakefield.
‘Winning in Growth Cities’ is an annual report which examines global commercial real estate investment activity, assessing cities by their success at attracting capital.
The 18% increase in commercial real estate investment is being led by Asia, both as a source of capital and as an investment destination, with investment in Asia accounting for 52% of all activity and Asian buyers responsible for 45% of all cross-border investment.
Carlo Barel di Sant’Albano, Head of Global Capital Markets at Cushman & Wakefield, said:
“There is no shortage of capital targeting real estate across myriad geographies and risk profiles. Indeed, we are seeing many investors increasing their allocations to real estate and they are evolving their strategies to allow for variable supply and risk tolerances. These are the key factors determining whether volumes rise further still; given the current environment, volumes could exceed current levels by up to 2% next year. This is likely to be led by global buying, but investors need to keep a close eye on structural shifts in the occupational market as both an opportunity and a challenge.”