Global Capital Picks Its Spots: Globalization Is the New Normal and Even Offers Risk-Mitigation Benefits
Transaction activity rebounded during the first half of 2011, and we are settling into what appears to be a more comfortable level of activity. The renewed interest in world-class cities confirms that globalisation is not a passing fad for investors. And those predicting (or hoping for) a return to domestic-centric, pre-globalisation investor patterns are bound to be disappointed. In fact, the capital markets are becoming more interconnected and transparent than ever, and even in a more sensible risk-pricing environment there is ample appetite for cross-border investing.
Based on the numbers alone, it’s clear that investors of all ilk have regained confidence in the real estate markets, albeit some faster than others. According to Q2 2011 research on global capital flows from Jones Lang LaSalle and as detailed further in the two tab