London reclaims number 1 spot

Global real estate transaction volumes for the fourth quarter of 2017 totaled $228 billion, 10 percent higher relative to the same period in 2016, according to JLL. This brings full-year volume for 2017 to $698 billion, 6 percent above the total transacted in 2016.

For the first time since 2010, Europe has become the most active global region for real estate investment, with full-year volume of $300 billion in 2017. Leading the way was the United Kingdom, the world’s second most liquid market. Foreign investors continue to favor London, as the British capital led all cities in attracting cross-border investment in 2017. Capital from Hong Kong represented nearly 41 percent of all foreign inflows to London in 2017, up from 17 percent the year before.

Also, London reclaimed its number 1 slot among most active cities, with a $32.8 billion annual investment volume during 2017. The city upset New York, which was also beaten by Los Angeles. New York closed with $20.9 billion, following Los Angeles, which recorded $22.9 billion in annual investment volume during 2017.

Other European countries with a strong fourth quarter were Germany and France. Both recorded positive investment growth in 2017 as activity picked up by 9 percent and 12 percent, respectively. In the Netherlands, a record-breaking year saw volume reach $21 billion, 44 percent higher than the previous peak in 2007.

For the second year in a row, the fourth quarter set a new high for quarterly investment volumes in Asia Pacific as the region recorded investment of $52 billion, 16 percent better than the fourth quarter of 2016. Annual activity in the region picked up by 13 percent to $149 billion. Volumes were up by 5 percent and 10 percent, respectively, in China and Japan, while Hong Kong set a new record for full-year volume, with $16 billion, thanks to robust investor demand. Positive growth in South Korea, Australia and Singapore rounded off the strong year for the region.

Total cross-border investment in the fourth quarter of 2017 reached $113 billion, just $1 billion shy of the previous high point seen in 2014. This brings overall cross-border flows for the year to $316 billion, 4 percent higher than in 2016. Driving this performance is the continued growth of inter-regional capital flows, which jumped up by 47 percent from the third quarter to reach $80 billion. After a slow start to the year, annual inter-regional flows hit $216 billion. Of that total, $112 billion and $45 billion were spent on office and industrial assets, respectively, as the two sectors continue to attract a majority of the world’s inter-regional capital.

Driven by a number of high-profile deals throughout the year, investors from China, Singapore and Hong Kong took the top three places for most active cross-border purchasers of real estate in 2017.

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