Where to invest in 2022

The most important markets for investment in real estate will be the United States, Britain and Germany.

 

In the U.S. real estate assets, according to forecasts of Knight Frank, in 2022, will be invested about $ 44.1 billion. Similar figures for the UK and Germany will, respectively, $ 38 billion and $ 18.9 billion. The top five will also include France ($ 13.2 billion) and the Netherlands ($ 12.6 billion).

 

The predicted figures for Russia are 300-320 bln. rubles ($4.2-4.5 bln.) investments in real estate, of which foreign investors will account for not more than 5-10%. "In Russia, there is now a relatively low share of foreign capital in total investment (at the end of the first three quarters, it was only 2.2% against 9% in the same period of 2020 and 15% in the same period of 2019)," says Alexei Novikov, managing partner of Knight Frank. - According to the results of 2021 and next year, we do not expect the figure to exceed 5-10% of total investments, which in absolute values will be about 15-30 billion rubles. The trend of reducing the share of foreign capital will continue, and local players will form the main investment activity". The largest financial flows, according to the company's forecasts, will come from the United States ($94.2 billion), Canada ($23.7 billion), Great Britain ($15.7 billion) and Germany ($8.2 billion), the report says. "We forecast that the global real estate investment market could see a new record in cross-border capital invested in 2022. The biggest growth in activity is expected in EMEA and APAC. Moreover, EMEA will be the key recipient of investments next year," Alexey Novikov forecasts. - The U.S. will act both as a key investor and as the main recipient of capital.

 

More than half of all funds invested by investors in real estate will be in the office segment, according to Knight Frank. "The main demand for offices will form investment management companies and institutional investors, they are interested in the markets of the United States, Britain, Germany, France and the Netherlands", - noted in the study.

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