Following the money: Europe has been the biggest beneficiary of an increase in global capital diversification
Of the almost US$1 trillion spent on commercial real estate around the globe in the 12 months between the start of April 2018 and the end of March 2019, one-third involved capital from cross-border investors. In its Active Capital report for 2019, Knight Frank puts this large proportion of globe-trotting capital down to a need for large investors to both diversify risk and chase enhanced returns.
To fulfil these two criteria, says John Mulqueen, head of offices EMEA at CBRE Global Investors, global capital places great emphasis on enduring structural forces and tends to be active in markets that were fastest to recover following the most recent downturn. This has meant, in practice, increased capital allocation into both logistics and residential — identified by Colliers International earlier this year as “big trends” and the world’s fastest-growing real estate sectors.
Colliers’ findings also chime with the 2019 Institutional Investors Real Esta