Los Angeles has topped New York in global real estate investment in 2017, according to a new JLL report, making it the No. 1 U.S. city.
L.A., which jumped one position from the previous report, had investments of $23 billion last year. That was $2 billion better than New York, which was bumped to third, from the top spot in in 2016. The report listed the 30 top cities in the world in the real estate investment category.
London ranked as the top city, with $33 billion, far outpacing the competition.
Over the last two years, L.A. has passed Tokyo, Paris and now New York. London is a powerhouse, despite economic fears spurred by the UK’s decision to leave the European Union. Its 2017 total was a 35 percent increase from the year before.
Global transaction volume reached $698 billion last year, up from $661 billion in 2016, according to JLL.
While total investment was up last year, the predictions for 2018 aren’t as rosy. JLL said it expects investment volume to drop 5 to 10 percent.
“This evolution in capital markets will accelerate the drive for investors to consider new strategies,” the report said.
Last year was also the first time L.A. tied New York in its potential to attract foreign investment, according to a survey of investors by the Association of Foreign Investors in Real Estate. Foreign players made around $8.3 billion in investments between mid-2015 and mid-2017. Most of that money came from Asian and Middle Eastern countries.
New York has not fared well and some believe the city could be at a later stage in the cycle than its competitors.