Commercial Real Estate News
Global Cross Border Property Investment Explodes 60 Percent in Late 2021
Global capital primarily targeted industrial and logistics assets
According to new research by property consultant CBRE, following a pandemic-induced lull, cross-regional global capital flows to the Asia-Pacific region (APAC), North America and Europe jumped 60% year-over-year in H2 2021 to a record $77.5 billion. Investors primarily targeted the industrial & logistics and office sectors, which accounted for 45% and 34%, respectively, of cross-regional capital flows.
North American investors accounted for most cross-regional activity, deploying $40 billion in H2 2021, with 80% flowing to Europe and 20% to APAC. North American inflows reached a five-year high of $27.3 billion amid an influx of investment in the industrial & logistics sector.
Outflows from APAC also reached a five-year high of $26 billion, largely due to a marked increase in Singaporean investment in the U.S. industrial & logistics sector. APAC attracted a decade-best $9.6 billion of inbound capital as North American investors stepped up acquisitions of Australian industrial & logistics and office assets.
Almost all European cross-border investment was intraregional in H2 2021. European inbound investment rose 41% year-over-year as U.S. investors ramped up acquisitions of U.K. industrial & logistics facilities and prime office buildings in major European cities.
By market, London topped the charts with $5.3 billion of cross-regional capital inflows, followed by New York ($3 billion), Sydney ($2.3 billion), Milan ($1.9 billion) and Boston ($1.8 billion), reports CBRE.
