Canada and Germany are most underweight markets
Canada and Germany are the world’s most underweight real estate markets, according to Knight Frank.
The consultancy has determined that Canada could receive an additional $4.5 billion (€3.9 billion) of real estate capital annually, while Germany could attract $3.1 billion (€2.7 billion) more into its market.
Knight Frank has also presented analysis showing that another five countries in Europe — Austria, Belgium, France, Sweden and Switzerland — are attracting less real estate investment than would be expected. The calculations have been made through a software tool designed by Knight Frank that forecasts which markets should attract more capital than their current reported levels. Called Gravity, the model assesses over 40 variables that impact inbound real estate investment. These include GDP per capita, the strength of a country’s currency, and a range of social and cultural factors that impact upon the flow of capital from one country to anothe