The global property investment market saw volumes rise 4% year-on-year to US$1.5 trillion in the year to June, according to new research from Cushman & Wakefield.
"Winning in Growth Cities," an annual report examining global commercial real estate investment activity, ranks cities by their success at attracting capital.
During the 12 months to June 2017, the top 25 cities globally accounted for almost half of the market but some sharp falls were seen in traditionally dominant cities.
New York remained the most sought-after market for the sixth year running despite investment dropping 37%, while a 25% decrease saw London lose its top three status and Paris witnessed a 21% decline. A lack of available assets was a key factor in these declines.
Relative winners included San Francisco which entered the top three thanks to 4.5% growth and Hong Kong with 19%. At the same time, Tier 2 cities, such as Malmö, Nice and Osaka gained importance through increased international interest as investors cast their net more widely in search of better returns.
North America held its strong grip as the leading region for total investment, with 13 US cities ranked in the top 25 and six each from Europe and Asia Pacific. Cities in the latter region experienced some of the most dramatic growth. Seoul saw volumes increase by 98%, and Singapore 52%.
More than half of cities in the APAC region reported negative growth with capital cities across the region including Sydney, Kuala Lumpur, Beijing and Taipei undergoing steep declines.
Despite this, Asian cities increased their global market share over the year and increased their presence within the top 50. The strongest growth in region came from those cities experiencing rapid economic development, with Myanmar especially documenting impressive expansion.