Commercial property investment in 2013 totalled $533bn

Global investment in commercial property rose 17% in 2013 to $533bn, according to data in The Wealth Report 2014.

Knight Frank is forecasting further rises of 11% in 2014 and 2015.

As well as these rising levels of investment, there has been a noticeable shift in the types of markets being targeted. As the appetite for risk rises, so too has demand for commercial property in previously out-of-favour locations, such as southern Europe; recovery-led asset sectors like warehousing, and second-tier cities in places like the UK.

Those, however, looking for distressed bargains will be disappointed as the market has moved beyond this phase.

For a full analysis of commercial property markets around the world by Knight Frank’s experts, download The Wealth Report 2014.

This year’s edition of The Wealth Report also features Knight Frank’s new Skyscraper Index, which tracks the capital value of upper-storey floor space.

Asia, led by Hong Kong dominates the top 10.

The Knight Frank Skyscraper Index top 10

Ranking City Region Prime Capital Value   (USD/sq m)

1

Hong Kong Asia-Pacific

$69,222

2

Tokyo Asia-Pacific

$42,283

3

New York   (Manhattan) North America

$25,740

4

Singapore Asia-Pacific

$23,810

5

London (City) Europe

$23,767

6

Sydney Asia-Pacific

$18,392

7

Beijing Asia-Pacific

$17,650

8

Shanghai Asia-Pacific

$17,547

9

San Francisco North America

$15,107

10

Moscow Europe

$13,333

 

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