CROSS-BORDER REAL ESTATE INVESTMENT VOLUME HITS A RECORD HIGH

The cross-border real estate investment transaction volumes hit a quarterly record high as investors search for suitable projects to diversify their property portfolios as soon as travel restrictions are eased.

Cross-border real estate investment volume hits a record high / ph: pexels 

According to JLL, cross-border investment hit a record quarterly high of $126 billion by the end of 2021 and is forecast to continue to grow in the first quarter of this year.  This is in stark contrast to half a year ago, when investors turned to the domestic investments causing cross-border investments to shrink.

All regions attract significant foreign investments. The Americas was the most impressive region with cross-border investment volume accounting for 29% of the entire industry in the last quarter of 2021, reaching a record high of 124 billion USD.

In the Europe, Middle East and Africa (EMEA) and Asia-Pacific regions, foreign investment is growing again, but still at a modest rate compared with the pre-pandemic average.  

Global investors poured $36 billion into the EMEA region in 2021, up 2% from pre-pandemic levels.  US and Singaporean companies have boosted cross-border trading volume here, primarily targeting offices and logistics real estates in the UK. 

In the Asia-Pacific, the return of local investment flows particularly from Hong Kong and Singaporean companies acquiring projects in China and Australia has fueled the recovery.

Cross-border investors are continuing to put their faith in housing stability.  Meanwhile, logistics real estate attracts greater capital due to higher property values.

Cross-border investment in offices in the Americas nearly doubled in 2021. Office transactions are also driving capital into Asia-Pacific region, accounting for 43% of total cross-border transactions - increased sharply from the 19% level of previous year.

CROSS-BORDER REAL ESTATE INVESTMENT VOLUME HITS A RECORD HIGH