RCA Insights

Global Cities Price Growth Slows to 6.1% in 2018

By on February 14th, 2019

The pace of annual price growth in global commercial real estate gateways slowed for the fourth consecutive quarter at the end of 2018, the new edition of RCA CPPI Global Cities shows. The Global Cities Composite of the RCA CPPI rose 6.1% in the fourth quarter from a year prior, down from a 10.6% pace at the end of 2017.

Boston, Washington DC and Toronto all registered modest price declines in 2018, and the pace of growth slowed in nearly every other American market compared to 2017. San Francisco is still posting annual gains in the double digits, but again this is a slower pace than last year. The trend of price softening in North American gateway cities has been ongoing since mid-2017.

Price growth in European markets continues to cool on the back of political uncertainty and concerns about slowing economic growth. London’s West End posted a price decline, though prices for London overall grew. There were bright spots in Europe: prices in Amsterdam and the German A Cities increased at rates greater than the Global Composite.

The pace of price growth in Asia Pacific cities is still well above the Americas or Europe, but here, again, increases have been slowing throughout 2018. Some softening in Sydney and Hong Kong growth rates are weighing down the overall pace of price gains for the region. With that, the rate of growth for three Asia Pacific gateway cities is – Melbourne, Singapore and Seoul – still in the double digits.

1902 Global Cities overview MAIN_300-01

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.