Asia leads the way for $1.8trn global CRE market

Asian buyers accounted for 45% of all cross-border real estate investment in the 12 months ending June 2018, according to data published by Cushman & Wakefield.

The global real estate market has hit a new record high, with $1.8 trillion in total transaction volumes recorded in the 12 months through June 2018, up 18 percent from $1.5 trillion in the same period last year, according to a report published by the real estate services firm Cushman & Wakefield.

In ‘Winning Growth Cities’, Cushman & Wakefield highlights Asia as the leading source of these heightened transaction volumes. Investments in Asia accounted for 52 percent of all activity, with Asian buyers responsible for 45 percent of all cross-border investment, for 12 months ending June 2018. However, as the charts show Asia-Pacific region trails Americas and the EMEA region in terms of transaction volumes in alternative sectors such as multifamily and student housing.

In terms of specific cities, New York topped the list as the most sought-after destination for capital in the 12 months through Q2 2018, although investment into the city declined 3.4 percent compared to the same period year-on-year.

Indeed, US cities were the only markets within the global top 10 to list to experience a decline in transactions. Nevertheless, like the previous 12 months, 6 of the top 10 cities were in the US, whilst two were from Europe and two from Asia.

Following the record global transaction volume, Cushman & Wakefield still sees some runway for a strong real estate market in the near future. While there are clear risks in the macro environment, there is as yet little to suggest that the cycle is set to end or that recession is looming, according to the real estate services firm’s report.