New York City knocked London off the top spot as the city attracting the most commercial property investment in the world – the first time it has held this position since 2007 – according to the new ‘Winning in Growth Cities‘ report published by global property consultant Cushman & Wakefield, which compiled its data based on estimates for the year through the end of the third quarter.
New York City saw a 165% increase in investment during the first nine months of the year, according to the report, which determined that the top 25 cities overall saw investment volumes rise 48% during this period. But while New York was the top city for real estate investment globally across all investment sectors, London remained the top choice for overseas investors, followed by Paris and then New York, Singapore and Beijing.
The office market was the dominant sector, taking a 40% share of the total volume, followed by retail (25%) and industrial (11%). London was the top city for office property investment globally, despite a marginal fall of 1.9% last year. New York retained its second place, but has significantly closed the gap following an increase of 189% to 14.1 billion.
Hong Kong attracted the most investment in the retail sector, boosted by the $2.4bn sale of Festival Walk. The Rhine-Ruhr metropolitan area in Germany and New York followed in second and third position, respectively, with the British cities Manchester and London in fourth and fifth. In the industrial sector, Singapore experienced the greatest amount of investment volumes and rose six places in the global ranking to displace Los Angeles as the top destination.
‘A whole range of factors above and beyond size and wealth go to make cities a success, ranging from classic business location priorities through to softer factors such as image and 'liveability,'’ says David Hutchings, head of the European research group at Cushman & Wakefield. ‘Advancing technology may give us the freedom to work anywhere, but this is only serving to reshape and sharpen the role of cities as a melting pot of people and ideas, with the winners those that have the densest network of skills, knowledge and learning but also the richest backdrop of culture, innovation and quality of life.’