New York is top of the pack when it comes to global investment destinations, according to research released at the EXPO REAL property show in Munich, Germany, today.
Broker Cushman & Wakefield revealed in its Winning in Growth Cities report that investment volumes in the first half of this year topped $34 billion – more than any other city in the world. At $34.7 billion, the US city repeated its pre-eminence of 2011, when it also sailed into first place. Deal volume, however, was some 18.9 percent above last year’s level.
According to the report, the second biggest market is London, which saw a 3.8 percent rise in investment levels at $29.3 billion. The report said London still had the largest global office and hotel investment market and, crucially for the international EXPO REAL event, took top spot for attracting overseas investment with a 92 percent lead over second placed city, Paris.
Tokyo, Paris, Los Angeles and Hong Kong round out the top 6. Los Angeles took top spot for investment in industrial, Shanghai for development sites and Hong Kong for retail.
The report said that low global interest rates and “ongoing risk” were luring investors towards commercial property markets in core global cities, with New York attracting the most investment during the last year. The top 25 global cities have in fact strengthened their lead in the past year – increasing their market share to 56 percent from 46 percent in 2009. “While this dominant group will continue to be favoured by investors for their risk-averse characteristics, they will in the future face increasing competition from a host of other cities,” the report warned.
Glenn Rufrano, president and global chief executive officer, said: “True global cities have gone from strength to strength in the past year, and the investment hierarchy is now well defined. However, the top targets are really ‘safety first’ choices and will be challenged when recovery comes. In our opinion the hierarchy will in fact expand as cities mature, higher quality property is developed in emerging locations and crucially, as occupiers lead the way into new markets.”