London is ranked as the leading city in global investment for real estate in 2017. JLL published a research this well indicated that despite the uncertainty of Brexit, it did not hamstring investments in real estate as was originally featured and predicted.
The figures revealed that investment in the British capital has increased to US$33 billion- a 33% leap from its figures in 2016. Taking the second spot is Los Angeles with an increase of US$23 billion and rounding up the third spot is New York at US$21 billion.
The latest data from JLL reveals that there is resilience in the real estate market all around the globe. This is despite the geopolitical uncertainty that has been felt last year. Investment is also expected to continue its bullish performance. There is significant interest to seek capital for the sector and there has been a considerable increase in investors that are actively finding ways to get their funds deployed.
It does seem surprising that the British capital has remained resilient despite it being a full year since the UK made the decision to leave the EU. This year is expected to see a number of critical decision that will be made while the negotiations are going on and this shook help give a much clearer view of the future is going to be like post-Brexit.
Even with capital targeting property and real estate expanding, it is projected that the volume of real estate investment is going to be around 5% to 10% lower this year. This is mainly due to challenges involved in finding assets that are available for purchase, along with the continuing discipline among investors. All in all, it is expected to constrain the growth values for this year. This will, however, cause investors to be more motivated to look for new strategies that will focus more on deals that are entity level, refinancing, recapitalisation, as well as a broader strategy for debts.
It is also expected that there will be a closing of the gaps among the leading cities as each vies to attract investment flows. Locations that have been established as hubs for technology and science are also expected to continue strengthening their status as destinations for investments.
The investment market around the globe still continues to be topped by the Big Seven of which London, Paris, New York, Singapore, Tokyo, Seoul, and Hong Kong are all parts of. All of the seven are part of 2017’s Global Top 10. This time, however, New York got displaced by contender Los Angeles as it managed to take the second spot. In addition, investment volumes in Amsterdam have also doubled in 2017. Other cities such as Toronto, Shanghai, and Sydney have also seen considerable activity levels.
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