It took the Brexit referendum to help make New York the world’s top destination for overseas commercial real estate investors.
The Big Apple overtook London in that category over a 12-month period ending in June, according to a Cushman & Wakefield report cited by Bloomberg. Foreign investors spent around $25 billion in New York properties over the period. Meanwhile, foreign investment in London fell from $39 billion a year earlier to just under $25 billion amid fears that Britain’s vote to leave the European Union could damage the property market.
“London lost out as Brexit concerns and high pricing hit even before the referendum,” the report notes, while New York “may feel its influence grow as its chief rival is distracted. Asia may see increased trade and investment, benefiting larger centers such as Tokyo, Shanghai and Hong Kong.”
Brokers have long argued that the Brexit vote could end up being a boon for New York’s real estate market.
The report also notes that about 10 percent of all global investment on income-producing real estate now goes to New York. [Bloomberg] — Konrad Putzier