Cross-border real estate investment will reach record levels in 2022, according to new research from Knight Frank.
The broker's 2021 Active Capital Report predicts a resurgence of investment flows into real estate, hitting record pre-pandemic levels into key sectors including offices, logistics and residential, signalling a marked return of investor confidence.
The US, UK, Germany, France and the Netherlands are forecast to be the top destinations for cross border real estate investment in 2022, with the US, Canada, UK, and Germany predicted to be largest deployers of cross border capital in 2022, led by investment managers, institutions and private equity investors.
The office sector is tipped to be the focus of more than half of all major cross-border transactions while residential is forecast to be the second most invested sector in 2022.
Sources of capital are likely to be broad based, targeting a geographically diverse area, including the US, Germany, the UK, the Netherlands, and Japan. Investment managers and private equity funds, particularly from the US and Canada, are forecast to remain major players in the industrials market in 2022, also targeting a diverse range of locations including the US, the UK, Germany, France and the Netherlands, as well as Spain, Poland and Australia.
Neil Brookes, head of Global Capital Markets at Knight Frank, commented: 'The results from this year’s report are a welcome sign of the continuing recovery in the global capital markets and a resurgence of global cross-border investment into real estate. Indeed, as the world moves into the next phase of living with the pandemic, we could see a roaring 20s effect for real estate in 2022.'