According to the latest research from real estate firm Knight Frank, cross-border real estate investment traffic will reach a record level by 2022.

In 2020, research by Knight Frank's Active Capital correctly predicted that the US would be the top destination for cross-border real estate capital globally by 2021, followed by the UK, Germany, Australia and the UK, respectively. France.

Research by Active Capital this year shows the recovery of investment flows in the real estate sector, on par with pre-pandemic levels, focusing on key sectors including offices, logistics and housing, signaling investors' confidence has returned.

The US, UK, Germany, France and the Netherlands are forecast to be the top destinations for cross-border real estate investment in 2022, led by investment managers, institutions and investors. personal.

According to Active Capital, the Asia-Pacific (APAC) region will see a significant increase in investment volume when it receives capital from the US, Singapore, Canada, UK and Germany. In addition, the office leasing segment will account for a larger proportion of investment.

The office sector in APAC is forecast to attract more than half of investment volume from investors in the region. China, Japan and Australia are popular destinations. Standing at the next positions are the retail and industrial real estate segments, respectively.

For investment abroad, the US will become a favorite destination for Asian investors thanks to the opportunity to expand across sectors. Meanwhile, the UK will be the favorite market for Asian investors looking for opportunities in Europe. In addition, some gateway markets of the old continent also attract attention.

“The results from this year’s report are a positive sign of the continued recovery of the property market ,” said Neil Brookes, global head of capital markets at Knight Frank . As the world enters the post-Covid-19 phase, cross-border investment could return to the way it was before the outbreak. In addition, thanks to the development of all kinds of technologies, we have been able to solve some of the challenges.”

Using price modeling tools, Knight Frank determined the value of an office building. Specifically, office buildings in the center of London, England have the highest ratings, enjoying a 10.5% premium on the sale price. This is followed by office buildings in the cities of Melbourne and Sydney. Buildings are also ranked based on the ESG (environment - society - governance) factor.

“The pandemic has accelerated the adoption of the ESG agenda in investment and business decisions ,” said Emily Relf, ​​Strategy Lead at Knight Frank . Our studies at Active Capital show that the demand for green buildings will increase. This is a stark reminder that ESG is not an issue to watch for in the future, but a reality for investors today.”

Knight Frank's research also identifies London, Shanghai, New York, Paris and Washington DC as the world's top five cities for sustainable development in terms of real estate. Cities are measured on a range of factors, such as public transport networks, urban green spaces, etc.

However, while these cities are making strides in helping to reduce carbon emissions, no city is completely immune to climate change risks. Specifically, none of the 286 cities worldwide surveyed by Knight Frank scored above 6 out of 10 in terms of resilience to climate risks.

“We quickly found sustainability driving real estate investment strategies ,” said Victoria Ormond, Capital Markets Research Partner at Knight Frank . Still, investors around the world need to take into account the risks of natural disasters as well as future climate change."

According to Cafeland