For the first time since 2007, New York has snatched the lead from London as the number one destination for real estate investment, after improved access to financing led to more US deals, according to Cushman & Wakefield Inc.
Data compiled by the New York-based broker and Real Capital Analytics Inc showed that investments in New York expanded 166 percent to $29.7 billion in the whole year to August, compared to the previous year, while in the greater London area, investments rose 2.4 percent to $27.2 billion.
Cushman noted that buyers are attracted to London and New York because the cities focus on the “biggest and best”, a trend that will carry on in the next six months.
The report also said that outside of the US, real estate lending is tighter and is “very focused on prime, leased assets only”.
Atlanta, Boston, Chicago and New York were four of the five fastest growing property investment markets by volume, the report added. Germany’s Frankfurt and Rhine-Main region ranked fourth, with 126 percent growth.
Joseph Kelly, Director of Market Analysis at Real Capital Analytics (RCA) said that the revival of the commercial mortgage-backed US security market during the first half of 2011 has stimulated the rise in investment. However, he added that the market is “starting to slow down”.
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