Global capital primarily targeted industrial and logistics assets
According to new research by property consultant CBRE, following a pandemic-induced lull, cross-regional global capital flows to the Asia-Pacific region (APAC), North America and Europe jumped 60% year-over-year in H2 2021 to a record $77.5 billion. Investors primarily targeted the industrial & logistics and office sectors, which accounted for 45% and 34%, respectively, of cross-regional capital flows.
North American investors accounted for most cross-regional activity, deploying $40 billion in H2 2021, with 80% flowing to Europe and 20% to APAC. North American inflows reached a five-year high of $27.3 billion amid an influx of investment in the industrial & logistics sector.
Outflows from APAC also reached a five-year high of $26 billion, largely due to a marked increase in Singaporean investment in the U.S. industrial & logistics sector. APAC attracted a decade-best $9.6 billion of inbound capital as North American investors stepped up acquisitions of Australian industrial & logistics and office assets.
Almost all European cross-border investment was intraregional in H2 2021. European inbound investment rose 41% year-over-year as U.S. investors ramped up acquisitions of U.K. industrial & logistics facilities and prime office buildings in major European cities.
By market, London topped the charts with $5.3 billion of cross-regional capital inflows, followed by New York ($3 billion), Sydney ($2.3 billion), Milan ($1.9 billion) and Boston ($1.8 billion), reports CBRE.