Cross-border real estate investment will reach record levels in 2022, according to new research from Knight Frank. This year’s Active Capital research suggests a resurgence of investment flows into real estate, hitting record pre-pandemic levels into key sectors including offices, logistics and residential, signalling a marked return of investor confidence.
The US, UK, Germany, France and the Netherlands are forecast to be the top destinations for cross border real estate investment in 2022, with the US, Canada, UK, and Germany predicted to be largest deployers of cross border capital in 2022, led by investment managers, institutions and private equity investors. India is amongst key markets globally with cross border real estate investment projections of USD 2.5 billion in the year 2022.
Shishir Baijal, Chairman and Managing Director Knight Frank India, commented: “A series of structural reforms in recent past has put the country’s real estate sector on high trajectory attracting global attention. Rapidly improving pandemic scenario in the country coupled with policy interventions to support realty sector growth will ensure global capital finds it attractive to participate in the sector. The country’s commercial real estate sector has evinced strong global investor interest in segments led by Office and Warehouse. With best-in-class global participation on capital as well as development front, we expect that the volume and quality of product offerings will see a marked scale-up in near future.”
The 2021 Active Capital Report, now in its sixth year, uses data and proprietary modelling to predict global real estate investment trends for the year ahead. For the first time, the capital gravity research model uses cutting-edge machine learning to identify country-by-country capital flows, type of investors behind the capital and the key sectors within different destination countries.