London still attracts more international property investment than anywhere else in the world, while global real estate investment figures soared to $1.62trn (£1.17trn) for the first time in 2017.
Investment levels into property across the globe increased by 13.3% last year, compared to 2016’s recorded $1.42trn worth of investment, according to the latest report from Cushman & Wakefield, bringing total investment in the sector to a record high.
The report also revealed that Brexit doesn’t seem to have dampened the spirits of global property investors, with London still the most popular place, in terms of individual cities, for property investment. One reason for this is the persisting weakness of the pound, which makes the UK a more affordable option for many overseas backers, while the capital has historically been seen as a hugely attractive place to invest in real estate – although this could be set to change as the north of the country begins to overtake the south.
Huge property investment from Asia
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Asian investors brought in more than half (52%) of all the cash spent in 2017, with a few very large transactions boosting the numbers significantly. One of the few place where Asian activity fell across the world was the US, after domestic capital controls were brought in in China, as well as ongoing uncertainty over the US’s policies.
In Europe, Asian investment increased by 96% in 2017 compared to the previous year, while local buying saw a slight fall over the period. Europe also attracted 50% of all cross-border spending, according to the report.
Report author David Hutchings, Cushman & Wakefield’s head of EMEA Investment, said: “Perhaps the strongest reason for cheer at present is the health of the economy and the globally synchronised nature of the upturn we are seeing. The increase in real estate development and forward funding in 2017 shows that investors already recognise this but the strength of the occupier market may yet surprise in the year ahead.”
