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RCA Indices: Global Cities Hit Pricing Records, Though Not All Recovered Yet
Real Capital Analytics’ newly-created CPPI (Commercial Property Price Indices) reveal that in Q2 2017 the Global Cities Composite was 36.1% above pre-Global Financial Crisis (GFC) levels a decade earlier. Yet, four cities, Amsterdam, Chicago, Tokyo and Washington DC, have failed to recover to their prior peaks in 2007.
RCA’s Robert White says, “Gateway cities are clear winners in the ultra-low interest rate environment that has prevailed since the GFC, outperforming their national markets as investors have favored core, city center properties in the most globally connected markets.”
RCA’s series of ground-breaking market indices show pricing in other cities has fully recovered and gone on to set new records. Competition for properties and low interest rates has driven up pricing to record levels. For instance, prices in Hong Kong have tripled since the peak of 2007, while in Manhattan and London’s West End, they have nearly doubled.
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