Real Estate

Europe Leads Asia For Cross-Border Real Estate Flows - Knight Frank

Jackie Bennion, Deputy Editor, 1 October 2021


Cross-border investment in real estate appears to be more than weathering the pandemic.

Knight Frank's 6th annual Active Capital Report published this week has forecast good times ahead for the global real estate market as “green premiums” take off and investor confidence in the office, retail and hotel sectors returns.

The global property firm has ranked the US, the UK, Germany, France, and the Netherlands as the top countries for cross-border real estate investment in 2022, with Europe, Middle East and Africa destinations on track to increase inflow by 50 per cent, and inflows into Asia-Pacific countries rising around 30 per cent.

Those who were writing off the office sector at the height of the pandemic are being assured that the sector is tipped to occupy more than half of all major cross-border transactions, Knight Frank's analysis reveals, bolstered by income-seeking investors.

Residential real estate has also stayed bouyant, with the sector expecting the second largest inflows in 2022, no doubt dominated by ongoing conversations among families about where and how they want to live post the pandemic.

Fund managers and private equity will continue driving the industrials and logistics sector in 2022, with locations including the US, the UK, Germany, France and the Netherlands singled out as prime markets, along with Spain, Poland and Australia.

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