According to a new report from CBRE, 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, up from 12th-place in 2014. The total includes $913 million from non-American sources, with investors from Latin America and China leading the charge. The rest of the top ten broke down as follows: New York ranked first, London, Los Angeles, San Francisco, Chicago and Washington, Tokyo, Boston, Atlanta and Dallas. Orlando ranked 19th. The U.S. dominated the list with 15 of the top 20 cities making the report.
“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.”
