The value of investable commercial real estate in the world is $27.5 trillion.

 

In 2017, the most 'liquid' markets in the world were New York, London, and Dallas.

According to CBRE, the world's top commercial real estate investment markets are Tokyo, New York, and Los Angeles, with a total stock of investable commercial real estate assets of $27.5 trillion.

For 122 cities throughout the world, CBRE looked at the relationship between market size and capital flows into real estate. According to the findings, there is a strong link between the size of a city's real estate stock and the amount of money invested in that city. doha house

Findings from throughout the world:

Tokyo has the largest single market in the world, with $711 billion in investable real estate, followed by New York ($657 billion) and Los Angeles ($482 billion).

The two largest European markets are Paris ($342 billion) and London ($334 billion).

The top ten cities accounted for over $4.0 trillion in global investable real estate stock, or around 15% of the total.

The Americas' top five cities (New York, Los Angeles, San Francisco, Chicago, and Houston) account for $2 trillion in investable real estate, a statistic that can be linked to the continent's free market economy and metropolis.

The five largest cities in Asia Pacific (Tokyo, Seoul, Osaka, Sydney, and Melbourne) have a combined GDP of $1.5 trillion, while data for all cities in the region, including China, was not accessible.

The influence of national boundaries, land use planning, and regional support programs is linked to the lower total of $1 trillion in Europe's five greatest cities (Paris, London, Madrid, Milan, and Munich).

The study discovered 'outlier' cities that deviated from the norm and attracted either more or less real estate investment than their market size would predict. Smaller cities in the United States, such as Tampa, Richmond, Austin, and Charleston, attracted greater investment, while regional UK cities, such as Edinburgh, Sheffield, and Cardiff, as well as Oslo, Düsseldorf, and Tallinn, did so in Europe.

To determine the market's liquidity, CBRE looked at the ratio between market size and real estate investment inflow. London, New York, and Dallas are the three most liquid markets among cities with an average turnover of at least $10 billion, with 8.6%, 7.1 percent, and 7.0 percent of stock moved annually, respectively. Following closely behind were San Francisco, Los Angeles, Washington, D.C., and Paris, which all traded above 4.8 percent.

"Investors seeking a global diversification strategy should consider the amount of stock accessible in each market; a real market neutral portfolio should be weighted by city size. Most investors don't aim for complete global diversification; instead, they focus on a narrower approach, such as "core real estate in global gateway cities." It's critical for these investors to understand the relative sizes of the major investment markets in order to maintain portfolio balance "CBRE's global president of capital markets, Chris Ludeman, said.