Real estate reports show that real estate investment in the British capital London grew, topping the list of the most attractive cities for global real estate investment in 2017, despite the uncertainty surrounding Brexit. According to a report by global real estate market research and advisory firm JLL, investments rose by 35% from 2016 to $33 billion in 2017.
Brexit did not affect
<The report expects the real estate investment sector to continue its strong performance, as the weight of capital seeking to enter the sector remains significant and investors are looking for new ways to access capital. Richard Bloxham, head of capital markets at JLL, said: “It may come as a surprise that London's commercial real estate market has survived the first full year following the majority's decision to leave the European Union.” He noted that 2018 will see a number of key decisions during the negotiations that will give a much clearer picture of what the post-Brexit future will look like.Los Angeles investments $23 billion
American Los Angeles moved into second place in the top 30 with $23 billion in investment, while New York came in third with $21 billion. The data highlighted the resilience of the global real estate market despite geopolitical uncertainty, with transaction volume reaching nearly US$700 billion for the full year 2017, surpassing the strong levels of 2016.
The seven big cities in real estate
<London, New York, Tokyo, Paris, Paris, Singapore, Hong Kong and Seoul are the most competitive, open and dominant cities in the global investment landscape, all of which appeared in the top 10 in 2017. It revealed a shift in power centers between two of the Big Seven - London and New York - and rival Los Angeles, but London came out on top with investment volumes up 35% from their 2016 lows, supported by significant activity by foreign buyers, notably from Hong Kong, the US and Germany.Asia's cities also saw a surge in investment volumes in 2017. Asian cities in the G7 also saw an increase in real estate activity in 2017, with major transactions by overseas investors contributing to double-digit growth in Hong Kong, Singapore and Tokyo.
Asian cities in the G7 also saw an increase in real estate activity in 2017, with major transactions by overseas investors contributing to double-digit growth in Hong Kong, Singapore and Tokyo.
Challenges to asset investment opportunities
Challenges in finding assets available for purchase, coupled with investor commitment, may constrain growth. The evolution of global capital markets will accelerate the trend for investors to consider new strategies, recapitalization, refinancing, refinancing and broader debt strategies, as well as the expansion of real estate investment around the world.
The report noted that the gap between the seven major cities that have attracted about a quarter of global investment flows over the past three years will continue to narrow, led by London and New York, and cities that are competing with elite cities for capital and new business such as Amsterdam, Los Angeles, San Francisco, Shanghai, Sydney and Toronto.
The report noted that the evolution of global capital markets will accelerate the trend for investors to consider new strategies, recapitalization, refinancing, and broader debt strategies, as well as the expansion of real estate investment globally.
