Key facts
- Global cross-border commercial property investment rose 56% to $71.8 billion in H1.
- Overall building transactions grew 10% to $604.6 billion in H1.
- Asian cross-border property investment reached $19.3 billion.
- European cross-border property investment reached $39.9 billion.
- Singapore led globally with $8.7 billion in cross-border volume.
- Higher borrowing costs may limit investment in the second half.
Cross-border investment into global commercial property saw a significant surge of 56% in the first half of the year, reaching $71.8 billion, according to research from property agency JLL. This growth outpaced the more modest 10% increase in overall building transactions, which totaled $604.6 billion in the same period, based on separate data from MSCI.
International investment in Asian property quadrupled to $19.3 billion, while European property investment grew by 31% to $39.9 billion. JLL noted a re-emergence of the office sector, with international investors showing particular activity in major European cities like London and Milan. Singapore emerged as the top global city for cross-border property volume, attracting $8.7 billion.
However, JLL cautioned that rising borrowing costs could dampen investment activity in the latter half of the year, as volumes are closely correlated with interest rates.