Chinese real estate investment predicted to grow at 20pc per year

Investment has already grown at “a torrid rate”, according to the group. Indeed, in 2010, Chinese investment abroad totaled $900 million. In 2012, that had risen to $5.6 billion. This year, that level has already been exceeded thanks to high profile deals in key Gateway cities.

The trend is “likely to continue for many years”, predicts Savills as China “further integrates with the rest of the world” and new sources of capital gain traction in overseas markets.

“Investment volumes could conservatively continue to grow at 20pc per annum over the next decade,” noted Savills.

“Chinese individuals have long been subject to stringent capital controls, yet as the economy grows and integrates with the rest of the world due to Renminbi internationalisation gaining momentum, capital flight from Chinese nationals has become increasingly common,” reads the report. “Much of this money finds its way into the property markets, the favoured investment product of many Chinese.”

“Chinese investors have now moved onto other markets where, although they account for a relatively small portion of buyers, their numbers are rising rapidly,” commented James Macdonald, Head of Savills Research, China. “Chinese nationals are seeking capital security, access to education and healthcare, permanent residency and citizenship. At the same time, a much stronger renminbi has made post-global financial crisis investment opportunities seem much more affordable.”