From Top 30 To Top 50 Real Estate Investments Set To Diversify
News Posted On: 19 April 2012
A latest report by global real estate services firm Jones Lang LaSalle indicates that property investors will be increasingly extending their footprints to emerging destinations. In the coming years, real estate dollars will be pumped into newer cities like Moscow, Sao Paulo and Shanghai and Beijing.
This means that the list of 'top 30' cities will most likely expand to a 'top 50' list. Jones Lang LaSalle's research has shown that over 50 per cent of global real estate investment is concentrated in thirty cities. Of this, a quarter is reserved for five top cities: London, Paris, New York, Hong Kong and Tokyo. New developments should see the five top-tier destinations facing quite a bit of competition from emerging economies.
How do the cities currently rank?
Of the five most favoured real estate destinations, Paris and London have maintained their traditional stronghold consistently. But Asian cities have elbowed their way into the top ten list. While there were two Asian countries in 2004's list, there are currently five ruling the roost at the top. China, in particular, is expected to contribute significantly through 2020.
North America is not far behind; the top ten list features three cities- Washington DC, Toronto and New York. Of the fastest growing cities, at least six are forecasted to be in the US. With real estate investors and corporations setting their sights on global destinations, the list of coveted few real estate hotspots will get bigger.
How's the real estate scene in Asia looking?
With the likes of Chengdu and Chongqing being considered one of the fastest growing cities in the world, China's real estate offers excellent opportunities for investors. Modernization in China's primary, secondary and tertiary cities is driving growth and Grade A offices properties are growing at a rate of ten percent year-on-year. Shanghai, Seoul and Singapore, besides the traditional favourites Hong Kong and Tokyo, have emerged as exciting property investment destinations.
What real estate investment returns does Uncle Sam have to offer?
US cities are offering a counter-balance to their Asian counterparts. Over one-third of all global commercial real estate investment occurs in American cities. Of these, eleven are forecasted to appear in the list of top 30 cities by Gross Domestic Product (GDP) in the next eight years. These include Los Angeles, New York, Chicago, Houston, Dallas and Washington DC. The likes of Austin and Raleigh-Durham in North Carolina are expected to enter this list, and also mature as key property investment destinations in the United States.
Will Euro Zone properties continue to attract attention?
It appears as if the Euro Zone crisis hasn’t affected the 'safe bet' image of London, which remains the firm favourite of real estate investors, attracting over $43 million in 2010 and the first quarter of 2011. London apart, Moscow, Istanbul and Paris are marked for their diverse industry sectors and global atmosphere. Stockholm and Munich are other destinations that present strong property investment conditions on the back of innovations and modernization.
View Overseas property for sale
Written by Les Calvert
Back to news articles for this country