Global capital primarily targeted assets in the logistics and industrial sectors.
Following a pandemic-induced lull, cross-regional global capital flows to the Asia-Pacific region (APAC), North America, and Europe increased 60% year over year in H2 2021 to a record $77.5 billion, according to new research by property consultant CBRE. Investors primarily focused on the office and industrial & logistics sectors, which together accounted for 45% and 34% of cross-regional capital flows.
The most cross-regional activity was driven by North American investors, who invested $40 billion in H2 2021, 80% of which went to Europe and 20% to APAC. With a surge in industrial and logistics investment, North American inflows hit a five-year high of $27.3 billion.
A five-year high in APAC outflows of $26 billion was also reached, largely as a result of a sharp rise in Singaporean investment in the American industrial and logistics sector. As North American investors increased their purchases of Australian office and industrial & logistics assets, APAC attracted $9.6 billion in foreign investment, the highest amount in a decade.
In H2 2021, almost all cross-border investment in Europe was intraregional. European inbound investment increased 41% year over year as U.S. investors stepped up the purchase of prime office buildings in significant European cities and U.K. industrial & logistics facilities.
According to CBRE, London led all markets in cross-regional capital inflows with $5.3 billion, followed by New York ($3 billion), Sydney ($2.3 billion), Milan ($1.9 billion), and Boston ($1.8 billion).