Cross-Border Real Estate Investment To Hit $1T By 2020
Global cross-border real estate deals will break $1 trillion by 2020, up from $700B in 2015—and will make up the majority of annual transactions, according to a new JLL report.
The lack of investment grade supply will push investors towards alternative real estate sectors like healthcare, retirement homes and residential, along with more M&As and JVs.
JLL global capital markets research director David Green-Morgan says the global aging population will drive the uptick in cross-border cash flow, the World Property Journal reports.
"By 2050 there will be more people over the age of 55 than the entire population of the world in 1950,” David says, adding that the demographic shift will contribute to a 500% spike in the amount of private equity targeted at real estate.
International buyers are already ramping up their cross-border investments—Chinese investors in particular have been throwing their yuan into the safe haven of US real estate, fleeing their domestic economic troubles. [WPJ]