Globally, capital flows into real estate remain very strong, with first half acquisition levels at $611 billion, matching those of 2016 and 2015, according to Colliers International’s Capital Flows: Developing not Cooling report. However, this masks a strong divergence trend between regions with investment volumes in Asia Pacific firmly on the way up, driven largely by the re-orientation of Chinese capital, while activity in the Americas and EMEA continue to show signs of late-cycle cooling.
A major factor in this shift is the re-orientation of Chinese capital toward the Asia Pacific region, which grew 50 percent year-over-year in the first half of 2017.
“Despite regulatory controls, Chinese capital looks likely to remain a feature of the investment landscape globally, but the focus of spending differs by global region,” said Richard Divall, head of EMEA cross-border capital markets at Colliers International. “In Asia Pacific, there is a much stronger