Asia investors behind record global real estate investments last year: Cushman & Wakefield

Among Asian cities, Chinese cities remained dominant with Beijing outperforming Shanghai, which had been 2016's preferred market.
Dated: 15-Mar-2018

SINGAPORE - Investors from Asia powered global real estate investments to an all-time high in 2017, and are likely to dominate the market in 2018 as the range of capital sources within the region continue to increase, according to a report by Cushman & Wakefield on Thursday (March 15).

The findings come from its Global Investment Atlas 2018 study which found that Asian investors accounted for 52 per cent of the record US$1.62 trillion of capital deployed for all kinds of property investments globally last year, which topped 2016's US$1.43 trillion.

Asian buyers were also responsible for 46 per cent of all cross-border investments.

But while investors from the Asia-Pacific increased their exposure to most markets, the US was a notable exception as a range of factors including the stage of the market cycle, uncertainty over US policies and domestic capital controls in China, all combined to deliver a fall in activity.

North America's loss was Europe's gain however, as investment from Asian sources grew by 96 per cent year-on-year, mainly due several very large-scale transactions, including acquisitions preparing the way for the implementation of China's Belt and Road Initiative.

Contrary to the conviction of some that European and American populism would result in a less adventurous investment community and a strengthening of domestic purchasing, local buying in both Europe and North America decreased on the year with the global increase in domestic investment driven exclusively by Asia Pacific buyers of residential properties, whose investments rose 39.9 per cent year-on-year.

In terms of countries, the US remained the main target for international investors but its lead fell and, as a regional, Europe was strongly ahead of North America, attracting 50 per cent of all cross-border spending.

Source: Straits Times