Global property investment rose by 4% in the year to June to $1.5 trillion, reflecting improved sentiment in 2017, Cushman & Wakefield reported Thursday.
According to the firm’s annual survey of global commercial real estate investment activity, high interest from regional buyers drove growth.
It said the economic background for real estate was now more encouraging than many analysts had anticipated, with the International Monetary Fund having raised global growth forecasts for the first time since 2011.
The U.S. dominated the survey’s ranking of global cities for investment, but Asian markets made the most impressive gains in the past year.
Thanks to increased interest in buying land for development, Asian markets grew by 24.6%. By comparison, European and North American markets experienced declines of 11% and 7.5%.
Although the top 25 gateway cities in the survey declined by 120 basis points, they remained dominant with nearly 50% of the market. Half the cities in the top 10 underwent volume declines over the past year; now the 10 cities represent just 29.5% of total volumes, down from 32.9%.
New York maintained its position as the most sought-after market for the sixth consecutive year, according to the survey. The other cities in the top 10 were Los Angeles, San Francisco, London, Dallas, Paris, Washington, Hong Kong, Atlanta and Shanghai.