According to JLL, major gateway cities in the United States and Europe are continuing to draw direct real estate investments, even as such investments decline worldwide. The firm’s recent Global Real Estate Perspective report highlights Los Angeles, Dallas, New York, London, and Atlanta as the leading cities for global commercial property investment over the past three years, with Paris and Phoenix also featuring prominently in the rankings. During an upcoming panel in France at Mipim, the largest annual real estate event globally, JLL intends to further explore cross-border investment trends.
In terms of transaction volumes, Los Angeles led with over $96 billion in commercial real estate deals, followed by Dallas with nearly $91.2 billion, New York with $80.7 billion, and London with $77.9 billion. These cities have become prime spots for direct investment, driven by robust industries, strategic positioning, business-friendly climates, and economic expansion.
Despite these strong city performances, the global market saw a significant downturn, with total commercial property transactions falling to $594 billion last year, marking a 44% decrease from 2022 and the lowest level of direct investment, including cross-border transactions, in over a decade. This decline was partly due to high interest rates and capital costs, creating a disparity between sellers’ prices and buyers’ offers. Additionally, the capital accumulated for closed-end real estate funds dropped to $142 billion, down 28% from the previous year.
However, 2024 has witnessed some positive activity in specific real estate segments, indicating market stabilization. While office property values and liquidity are struggling due to weak investor and lender confidence, the logistics, residential, and certain alternative sectors are seeing sustained interest. The residential sector, in particular, remained highly active and is expected to benefit from increased diversification in the global market.
Source link: https://www.costar.com/article/425809443/real-estate-investors-favor-los-angeles-dallas-new-york-and-london
Source Name: Costar
