The U.S. has displaced Europe as the favorite place for Asian investment in foreign commercial real estate.
Cross-border property investment by Asians surged to $8.6 billion in the first quarter, the most active start to a year since institutions in the region began a major push into overseas real estate in 2013, CBRE Group Inc. said in a statement Friday. The U.S. captured $3.3 billion of the total, ahead of Europe’s $2.5 billion.
Large cities such as New York have benefited from an influx of foreign cash that is pushing prices on top-tier buildings to records. Beijing-based Anbang Insurance Group Co. bought the landmark Waldorf Astoria in February for $1.95 billion, the largest deal ever for a U.S hotel. Office towers are fetching prices 33 percent above the peaks of 2008, according to an index from Moody’s Investors Service and Real Capital Analytics Inc.
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