London property investment closing in on new york

The Winning in Growth Cities report reveals that investment volumes in New York climbed 10.9 per cent year-on-year in the second quarter of 2014 to $55.4 billion. This is the eqvauilent of 7 per cent of the global market share, making the US city the largest market in the world for the fourth year in a row.

London, though is quickly catching up, with investment activity soaring 40.5 per cent in the same period. While it is closing the gap with New York, London is already the largest market in the world for cross-border investors.

Tokyo, meanwhile, climbed back into third place after a 30.4 per cent surge in investment saw it overtake Los Angeles. San Francisco completed the top five with $23.8 billion invested in its commercial property.

Cushman & Wakefield’s International CEO, Carlo Barel di Sant’Albano, said: “Competition, growth and Change will bring forth more new global winners.  While Gateway cities remain a primary focus for investors, interest in a broader spread of locations is increasingly apparent due to improved confidence and finance availability as well as a lack of supply in core cities.  Risk appetites have expanded in the US and buyers in Europe and Asia are following suit, particularly where local partners can be found."

Indeed, Shanghai, Beijing, Miami and Stockholm joined the top 20, while Toronto, Singapore, Moscow and Seoul fell out.  Dubai and Dublin saw significant Change and leaped into the top 50 from 186th and 82nd position respectively.

The fastest growing stream of international investment however has been Asian capital flowing out of the region.  Asian global investment rose 56% last year compared to a 54% increase by American investors, 26% by Europeans and 13% by Middle Eastern and African players.

Typically, Asian players cross borders easily but much in the past has been within their own region. That has changed dramatically in recent years as Asian businesses have diversified abroad, focusing initially on Gateway cities in the US and the UK but now spreading their net more widely, says the report.

"Looking forward to 2015, the global economy is anticipated to be firmer but still vulnerable, with trends divergent country-by-country," adds Carlo Barel di Sant’Albano. "One of the most notable drivers for this will be the polarisation in monetary policy, which will be tightening in some areas but remaining loose elsewhere."