According to a recent report by international real estate firm JLL, global real estate investment in 2017 is set to reach $700bn, a significant increase from $650bn in 2016. The report identifies new capital, emerging world cities, and the continued reliability of US markets as contributing factors to the overall increase in investment activity.
The report emphasised the importance of new capital stemming from China, which recently surpassed the US as the “world’s largest cross-border purchaser of commercial real estate assets”.
“New capital targeting real estate is only part of the story; experienced real estate investors are also allocating more money to direct real estate opportunities,” said David Green-Morgan, global capital markets research director at JLL.
Competition in major cities worldwide has paved the way for investments in mid-sized cities with high-valued sectors, which have been dubbed ‘new world cities’. Boston, Dallas, Stockholm and Dublin, for example, have all experienced increases in real estate activity.
The report also mentions the continued strength of the US real estate market, home to 16 of the top 30 cities for investment in 2016.