Miami in Top 10 global cities for real estate investment with $7.7B, CBRE says

In case you couldn’t tell by looking at the window and seeing cranes and construction workers scaling high rises, a new report by CBRE confirms that Miami is one of the world’s Top 10 destinations for real estate investment capital.

The Miami metro area ranked 7th globally with $7.7 billion in foreign and domestic real estate capital investment in the first half of 2015, according to the real estate brokerage and advisory firm. That’s up from a 12th-place ranking for  all of 2014.

That haul includes $913 million in international investment, which is also up from last year. International investors, especially from Latin America and China, have inked some blockbuster deals in Miami recently.

Not surprisingly, New York ranked first. It was followed by London, Los Angeles, San Francisco, Chicago and Washington. Holding down the seven spot, Miami/South Florida was followed by Tokyo, Boston, Atlanta and Dallas. Orlando was 19th.

Given that 15 of the Top 20 were cities in the United States, it appears that real estate investors are betting on growth in the U.S. market.

“Capital flows into real estate are well supported. Even ignoring rental value growth, real estate offers a ‘spread’ over bond rates of between 200 to 300 bps across global markets and capital will continue to be attracted to the sector,” said Iryna Pylypchuk, director of global research at CBRE. “The influx of new sources of capital targeting real estate as part of long-term liability-matching allocation strategies is helping to extend the investment cycle. At the same time, this pushes the ‘old capital’ into niche sectors, prompting expansion of the investment universe.”

CBRE said total real estate capital investment reached $407 billion in the first half of 2015, a 14 percent increase.

Original Content from South Florida Business Journal