Canadian investors more active in real estate

There was a surge in global investment in real estate in 2017 but North America failed to keep up with its peers.

Global investment reached a record U$1.62 trillion last year and Asian money was the clear leader, accounting for more than half of capital invested.

An annual report from real estate services firm Cushman & Wakefield shows that Asian investors were also responsible for 46% of all cross-border real estate investment activity.

Investors from Asia Pacific increased their exposure to most markets during 2017 although the US was a notable exception, with wealthy Asians preferring the potential of Europe.

The US was still the leading market for international investors but domestic investors slowed their activity. Overall, North American investor activity in real estate was down 6.9% year-over-year.

Canada was a bright spot for North American investment though with the investment rate rising 12%, the strongest in five years, and more dry powder being aimed at the US.

“Global real estate performed exceptionally well in 2017 with volumes up sharply and increasing valuations. This has provided good momentum going into 2018 and the balance of pricing, supply and demand all point to a further healthy year. Indeed, while stock is hard to find, we are forecasting a small gain in global volumes thanks to more development, an increase in profit taking and more corporate activity,” said Carlo Barel di Sant’Albano, Chief Executive of Cushman & Wakefield’s Global Capital Markets & Investor Services business.