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Real Estate Investment Momentum of Top Global Metros

Source: https://www.rcanalytics.com/chart-global-metro-momentum-2020/

Despite the slowdown in real estate markets accelerating across most of the world into the second quarter of the year, acquisition trends in two key global cities, both in China, have turned positive.

Global volumes started to wane around March this year, but the weakness in Asia Pacific had already been apparent for some time, as all of the region’s top 10 metros suffered double-digit declines in the first quarter. In contrast, more than half of the key metros in Europe and the U.S. recorded an increase in transaction activity, as economic shutdowns and travel restrictions were implemented later in the quarter.

Fast forward a couple of months, and Asia Pacific’s slide has been echoed across most of the top metros in the U.S. and Europe. For April and May deal activity, London was the only metro outside of Asia Pacific that managed to keep pace with last year, and even then, volume was mainly propped up by Blackstone’s multibillion-pound student housing acquisition. In the U.S., volumes across all the top 10 metros fell by more than 50%. (Deal volume data for May is preliminary.)

Back in Asia Pacific, nascent signs of a recovery are beginning to take root. Shanghai and Beijing have both rebounded in the second quarter so far, after precipitous drops in investment in the first quarter. It should be noted that Q1 2020 declines looked particularly stark in comparison with a record $10 billion spent across both metros in Q1 2019.

The completion of two large office deals in each city has injected some much-needed confidence into their outlook. The most prominent deal was GIC’s billion-dollar purchase of LG’s headquarters in Beijing, the largest individual property purchase across the globe in the quarter so far. In the coming months, volumes should continue to be supported by domestic firms selling assets to pare their debt loads.

To learn more about the data behind this article and what Real Capital Analytics has to offer, visit https://www.rcanalytics.com/.

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ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.