The March 2016 Investment
Intensity Index reports real estate investment activity at
near-record levels. Surpassing other potential capital-return
opportunities and dodging economic turmoil, global real estate
investment continues to skyrocket at a profitable rate. In 2015,
the total direct real estate investment columns reached $705
billion only 7 percent below the record high of $758 billion in
2007.
Far above cities such as Shanghai and San Francisco, Boston sits
high atop the investment charts as one of the most profitable New
World Cities. A New World City is essentially one that makes up for
its comparatively small stature by punching above its weight.
Opposed to Established World Cities such as London or New York, and
Emerging World Cities like Beirut, this happy-medium metropolitan
class is the ideal combination of prosperity and efficiency.
Investors are looking to place their stakes in these smaller, more
innovative cities with transparent, open markets.
Boston stands out in this category for its unparalleled
innovation, vibrant technology sector and top-class private and
public education systems. For these reasons, China has become one
of the leading foreign investors in its real estate market. As one
of the most educated classes of buyers, Chinese investors are not
only looking to diversify their investments, but also to feel a
sense of tangibility in their returns. This makes Boston a perfect
market one that is so consistently is on par with the affluence of
the country as whole.
The Boston commercial investment market is thriving.