By Real Capital Analytics on February 13th, 2020
Global commercial property prices continued to increase in 2019, though growth slowed to the weakest pace recorded since 2010, the latest RCA CPPI Global Cities report shows. The Global Cities Composite rose 3.7% year-over-year in the fourth quarter, down from a 6.7% pace at the start of 2019.
Fifteen of the 18 metros that contribute to the Global Cities Composite recorded an increase in prices for the year. Of the metros that posted a drop, Hong Kong fared the worst, with prices down 5.9% year-over-year. Hong Kong has posted some of the strongest price gains over the decade – up nearly 140% – but recent political turmoil has triggered a sudden shift in that momentum.
Annual price growth for the North American metros slipped to 5.9% in 2019, and for European metros price gains slowed to 4.3%. Cities in the Asia Pacific region eked out a 0.9% annual gain.
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