RCA Insights

Global Cities Price Growth Ebbs in Fourth Quarter, RCA CPPI Report Shows

By on February 15th, 2018

Global commercial real estate price growth slowed in the fourth quarter of 2017, the new edition of the RCA CPPI Global Cities report shows. The Global Cities Composite of the RCA CPPI increased 1.2% from the prior quarter, a smaller price appreciation than that logged in the first three quarters of the year.

Holding back the gains were flat to declining results in four of the six U.S. markets that are constituents of the Global Cities Index. New York metro recorded its first quarterly decline this cycle.

Compared to a year earlier, the Global Cities Composite was up a healthy 8.4% led by strong increases in Asia Pacific and continental Europe. Prices in Sydney and Hong Kong were the fastest growing in 2017. In Europe the German A Cities came out top and for the Americas San Francisco led annual price gains.

Hong Kong was a winner in terms of investment market momentum, logging increases greater than 20% for both acquisition volume and price, as shown in the chart. In 2017 the market posted some its largest and most expensive transactions on record.

1802 Global Cities MAIN-01

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.