(Bloomberg)—New York overtook London to become the most popular location for overseas commercial property investors as the growing U.S. economy and a stronger dollar draws buyers. Sales in the U.K. capital slumped on concerns that Britain would leave the European Union.
Overseas investors spent about $25 billion on commercial real estate in New York in the 12 months through June, according to a report by broker Cushman & Wakefield Inc. The value of sales in London fell to almost $25 billion from $39 billion in the same period a year earlier.
“London lost out as Brexit concerns and high pricing hit even before the referendum,” according to the report. New York “may feel its influence grow as its chief rival is distracted. Asia may see increased trade and investment, benefiting larger centers such as Tokyo, Shanghai and Hong Kong.”
Manhattan has become a magnet for property investors from around the world, pushing building values to records. The relative stability of the U.S. is attracting buyers fleeing economic and geopolitical uncertainty in their own countries. Almost one in every 10 dollars spent globally on income producing real estate now goes to New York, according to the report.
--With assistance from Sarah Mulholland. To contact the reporter on this story: Neil Callanan in London at [email protected] To contact the editors responsible for this story: Neil Callanan at [email protected] Ross Larsen, Jon Menon
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