North America is the fastest growing target for foreign capital
Despite increased stock market volatility, uncertainty of events in China and the Middle East as well as the approaching return of U.S. monetary tightening, real estate investors have delivered another robust year of rising volumes and values, according to Cushman & Wakefield’s latest ‘Winning in Growth Cities’ report.
In number one spot, New York increased its market share, driven by foreign buying in particular. Report author David Hutchings, Head of EMEA Investment Strategy, Cushman & Wakefield, said: “Europe is still a magnet for capital from all regions but North America has actually been the fastest growing target for foreign capital – a fact reflected in the dominance of U.S. cities in this year’s report. Fourteen of the top 25 cities are in the USA, while Germany, the second most popular country by number, has just three cities making the list. Investment into these U.S. cities grew by 32% compared to just 7% growth for non-U.S. cities in the top 25.
“Outward investment by U.S. players is also dominating global capital flows, accounting for 42% of all foreign investment between regions in the past year and growing by 25%,” Hutchings added.