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Global Cross-Regional Capital Flows Decline 52% Year-Over-Year
Global cross-regional capital flows between North America, Europe and Asia-Pacific totaled US$30.5 billion in the first half of 2023, down 52% compared to H1 2022, CBRE reported. Global investment was limited by elevated interest rates, softer real estate fundamentals and a mismatch in pricing expectations of buyers and sellers.
Cross-regional capital flow to Europe from the U.S. fell substantially in H1 2023, causing Europe’s total global cross-regional capital inflow to fall by 68% year-over-year. Conversely, cross-regional investment in North America increased by 5% Y-O-Y, driven primarily by two large acquisitions by Asian investors.
“Global investors likely will remain cautious for the rest of this year due to high interest rates and economic uncertainty,” said Richard Barkham, global chief economist for CBRE. “Nevertheless, it appears that inflation has peaked globally and central banks are either at or near the end of their rate-hiking cycles. Therefore, we expect the global investment market to begin recovering in the first half of 2024.”
- ◦Sale/Acquisition
