October 13, 2015
Investment in commercial property is at its highest level worldwide since the 2008 downturn, according to a new report from Cushman & Wakefield. The firm’s annual Winning in Growth Cities report claims that global investment levels increased by 16 percent in the year to June 2015 to stand at US$942.8 billion. The report suggests that global volumes will rise 17 percent over the next twelve months to hit a new record high of $1.1 trillion. Growth will be led again by markets in North America and Europe with patchy levels of investment worldwide. This has already led to the world’s top 25 ‘gateway cities’ in terms of investment increase their market share from 51 percent to 53 percent with cities like New York remaining attractive locations for foreign investors.London was the second largest market overall but top for foreign investors, while Tokyo, Los Angeles and San Francisco made up the rest of the top five.
‘Despite the strong overall growth and the major gateway cities remaining largely unmoved, change is more evident at regional levels,’ said report author David Hutchings, head of EMEA Investment Strategy at Cushman & Wakefield. 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.
‘Outward investment by US players is also dominating global capital flows, accounting for 42 percent of all foreign investment between regions in the past year and growing by 25 percent. Asian investment globally comes in at number two, with a 25 percent 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.’