Real Estate Capital Flows in a New Era

Ultra-low interest rates provided a massive boon to commercial real estate for years. With higher rates now in effect, what might be the impact on cross-border investors, who have been a key influence on market liquidity and pricing?

In this paper, we discuss potential changes in cross-border investment style and in appetite for commercial property. We also consider the consequences of upheaval in the office market and an increase in geopolitical tensions.

Share of cross-border capital in largest 20 global property markets

Investment volume 2010-23. Ranked by share of cross-border investment. We categorize cross-border investment as either global (the country of an investor’s headquarters location is on a different continent than that of the property) or continental (the country of an investor’s location is on the same continent as that of the property, but not in the same country).