New York attracted the most commercial property investment during 12 months to the end of June, as the global real estate investment market saw volumes increase by 16.7 per cent to $649 billion, according to Cushman & Wakefield’s annual Winning in Growth Cities report.

The US city is the largest global real estate investment market for the third consecutive year – with volumes rising 39 per cent to $49.2 billion in the year to Q2 2013; London holds onto second place overall with a 6 per cent increase in investment volumes which totaled $32.3 billion. Showing the fastest growth of any of the top 25 cities, Los Angeles leaped ahead of Tokyo to take third position. Global flows of cross-border capital reached $170.7 billion in the 12 months to Q2 2013

Asia was the largest source of cross-border capital with $55.4 billion invested non-domestically, 32 per cent of the total. Hong Kong is top for retail which reached $8.9 billion in the 12 months to Q2 2013.

The top 25 global cities saw their market share rise from 53 per cent to 55 per cent over the year to June, with volumes ahead by 20.7 per cent compared to a 12.1 per cent rise in the rest of the market.

“Most indicators suggest property demand will both increase and broaden to embrace new markets and a higher share of investment will be cross-border as investors increase their risk tolerance.  Assuming the US recovery continues to gain traction helping confidence and growth across all economies, we anticipate that next year will be favourable for much of the market as stimulus measures and recovery spark an appreciation in capital values for good quality space with strong occupier demand,” Carlo Barel di Sant’Albano, Cushman & Wakefield’s executive chairman, said.