New York beats London for overseas property investors on Brexit

[LONDON] New York overtook London to become the most popular location for overseas commercial property investors as the growing US economy and a stronger dollar draws buyers. Sales in the UK capital slumped on concerns that Britain would leave the European Union.

Overseas investors spent about US$25 billion on commercial real estate in New York in the 12 months through June, according to a report by broker Cushman & Wakefield Inc. The value of sales in London fell to almost US$25 billion from US$39 billion in the same period a year earlier.

"London lost out as Brexit concerns and high pricing hit even before the referendum," according to the report. New York "may feel its influence grow as its chief rival is distracted. Asia may see increased trade and investment, benefiting larger centers such as Tokyo, Shanghai and Hong Kong."

Manhattan has become a magnet for property investors from around the world, pushing building values to records. The relative stability of the US is attracting buyers fleeing economic and geopolitical uncertainty in their own countries. Almost one in every 10 dollars spent globally on income producing real estate now goes to New York, according to the report.

BLOOMBERG