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Private real estate investors driving up values in ‘safe havens’
Research - OCTOBER 24, 2017

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Private real estate investors driving up values in ‘safe havens’

by Andrea Waitrovich

Private investors into commercial real estate may be forced to look beyond the world’s leading cities for better value, according to new data from Knight Frank’s 2018 Global Cities report.

“Our analysis demonstrates that private investors remain focused on the ‘safe haven’ cities, where they get less bricks and mortar for their money but more long-term security,” said Anthony Duggan, head of capital markets research, Knight Frank. “Given the shift in values we have recorded, this strategy has also been rewarded with some strong performances.”

Knight Frank has analyzed how much prime office space can be acquired for $100 million as a guide for private buyers, who accounted for 25 percent of commercial real estate transactions in 2016 globally.

Hong Kong is by some margin the world’s most expensive city, where buyers could expect to acquire just 11,698 square feet — less than a single floor in The Shard — for $100 million.

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