The recent research by JLL (NYSE: JLL) showed London continuing to retain its position as the top city for global real estate investment in 2018. Current trends reveal that the investors continue to prefer the cities with flourishing investment markets and high levels of transparency. It is certainly a good indicator of how to invest in real estate in India.
A number of cities with a significant concentration of capital and potential continue to maintain their top slots. London, New York, Paris, Seoul, Hong Kong, Tokyo, Shanghai, Washington DC, Sydney, Singapore, Toronto, and Munich are among the top cities which have maintained top slots over the past 10 years, accounting for 30% of the total real estate investment.
As per the data, the total volume of Direct Commercial Real Estate Investment in 2018 amounted to $733 billion, surging by 4% from 2017, the best annual performance in a decade. With the cross-border purchases accounting for 31% of activity in 2018, close to the 10-year average, the investors still have a tendency of purchasing outside their own markets.
Talking about the current market situation, Richard Bloxam, Global Head of Capital Markets at JLL, said, “In a year when investors have had to deal with increasing populism, protectionism, and political uncertainty, the appeal of real estate as an asset class has continued to increase. Interestingly, investors remain focused on gateway cities, despite tight pricing. Many are looking at alternative or emerging locations, as well as varying real estate property types within these cities, rather than exploring other less familiar cities. A notable trend is that half of these established gateway cities are in the Asia Pacific. Increasing transparency in these markets is encouraging more investment, moving these cities even higher up the rankings in 2019 and beyond.”
Clearly, with a considerable amount of capital to be invested in the real estate, and the corporate occupier market fundamentals being favorable, there exists a high scope for continued income growth.