Asian cross-border real estate investment reached $77 bn (€72 bn) in 2014, according to Colliers International's latest global capital flows report 'How long will this property bull market last?'
Asian cross-border real estate investment reached $77 bn (€72 bn) in 2014, according to Colliers International's latest global capital flows report 'How long will this property bull market last?'
In 2005, Asia was a limited source of capital for property investment, with no single Asian market reaching the top 10 international funding pools. Total cross-border investment amounted to a modest $8 bn, with Singapore accounting for almost three-quarters.
The huge growth over the past decade occurred through a geographical diversification of sources, the report said. In 2014, Hong Kong ($29 bn) and Singapore ($20 bn) continued to contribute substantially to cross-border property investment, but China ($17 bn), South Korea ($3.7 bn), Malaysia ($3.2 bn), India ($2.2 bn) and Taiwan ($1.8 bn) began to make significant ripples of their own.
In percentage terms, Asian capital accounted for around 13% of cross-border investment in 2007 which increased to 30% in 2014. These percentage figures are possibly flattered, however, by a disproportionate drop in the volume of European cross border capital, a consequence of eurozone economic uncertainty and a calculated retreat to domestic only strategies after cross-border losses
incurred in the downturn.
Decreases in US capital are also observed between the 2007 peak ($90bn) and 2014 ($67bn).
Full report
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