Asian insurance funds could spend $75B on real estate

New York City to benefit from growing asset sizes and looser regulations

New York /
Jul.July 10, 2014 05:30 PM

In the coming years, Asian insurance funds are set to increase their spending on overseas real estate by $75 billion, and New York City could be a major benefactor.

The projection comes from commercial brokerage CBRE, which bases its expectations on the relaxation of regulations that previously limited Asian insurers’ foreign investment. Countries such as China, South Korea and Taiwan have recently allowed overseas direct investment and given funds the green light to allocate more money to real estate overseas, World Property Channel reported.

At the same time, the size of Asian insurers’ assets is growing – up 13 percent from 2008 to 2013. CBRE believes the combination of relaxed rules and growing assets could help the funds grow their direct and indirect investment in foreign real estate from $130 billion last year to $205 billion in 2018.

There are also fewer investible real estate assets in Asia than in developed markets such as New York and London. Trophy assets in gateway cities are prime targets. [World Property Channel] — Tom DiChristopher


Related Articles

arrow_forward_ios
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Centrale at 138 East 50th Street and Ceruzzi president Arthur Hooper (The Centrale NYC, Hooper via Sasha Maslov/Illustration by Kevin Rebong for The Real Deal)
Korean lender sues for $40M over Ceruzzi condo mezz loan
Korean lender sues for $40M over Ceruzzi condo mezz loan
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
China’s domestic housing sector was entering bubble territory last summer. (Getty)
Beijing may have slowed housing bubble — for now
Beijing may have slowed housing bubble — for now
(iStock)
China limits property loans to curb housing bubble
China limits property loans to curb housing bubble
Stockbridge managing director Terry Fancher (Photos via Stockbridge)
Stockbridge and South Korean firm strike $2B warehouse deal
Stockbridge and South Korean firm strike $2B warehouse deal
The Internal Revenue Service is going after foreign real estate investors as part of a broader sweep to collect revenues amid the pandemic.  (iStock)
“There’s a lot of money to be made”: IRS targets foreign real estate investors
“There’s a lot of money to be made”: IRS targets foreign real estate investors
Beike Zhaofang founder Zuo Hui (Getty; iStock)
Inside the world’s most valuable proptech company
Inside the world’s most valuable proptech company
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...