RCA Insights

CRE Price Growth in Global Cities Accelerates in Q2

By on September 14th, 2017

Global commercial real estate prices grew at the fastest pace in two years in the second quarter of 2017, a new report from Real Capital Analytics shows. The Global Cities Composite of the RCA CPPI climbed 2.6% in Q2’17 and has risen 8.3% from a year ago, propelled by strong gains in Boston, Hong Kong, Melbourne and the German A Cities.

1709 Global Cities bubble chart for Insights v2-01

The price growth comes despite a 10.9% year-over-year decline in transaction volumes in the Global Cities and subpar results in the two largest global markets – London and New York. The clear winners with the most investment momentum, clustered in the upper right quadrant of the graph above, are the German A Cities, Hong Kong, San Francisco, Amsterdam and Sydney.

These results are based on a series of groundbreaking market indices created by Real Capital Analytics (RCA), and form part of a comprehensive report just published.  The indices are transaction-based and utilize repeat-sales regression methodology.  The Global Cities Composite tracks 27 metro areas in North America, Europe and Asia Pacific. Over the past decade, approximately 46% of all commercial property transactions have occurred in one of the cities tracked by these indices.

The RCA CPPI Global Cities report is published quarterly. To learn more about the RCA CPPI and to sign up for reports visit rcanalytics.com. If you are an RCA client you can also access this report and conduct your own CPPI analysis on the RCA website.