Frankfurt am Main, Munich and Berlin belong to the ten most important targets of foreign capital. This was made apparent through an analysis by the real estate specialist JLL, which was published on Tuesday, the 26th of February. With that, Frankfurt took the fifth place after London, Paris, New York and Shanghai.
More than half of the cities in this ranking received higher investments from abroad. For instance, in the previous year 4.46 billion US dollar (3.92 billion euro) flowed into properties in Frankfurt, which poses an increase by 77 percent in comparison with 2017. Munich’s investment volume more than tripled to 3 billion USD, as London certainly leads the chart with 23 billion USD, but recorded a growth by just under seven percent. Despite the decline from five to less than three billion USD, Berlin could remain in the top 10 just in front of newcomer Warsaw. In total, cross-border purchases were at 224 billion USD in the previous year.
The growth of investments towards Frankfurt could be explained within the international context through the aftermaths of the Brexit referendum. Thus, many banks started to relocate jobs from London to the Main. In general, big foreign investments are also said to have led to increased housing shortages and strongly rising property prices in Germany. However, there’s no competition with private buyers, since investments are generally made in large properties or entire housing stocks.
The highest sum of foreign capital comes from Singapur, where 20.7 billion USD have been exported from in the previous year – which marks a growth by 30 percent. Germany already follows on second spot and increased its investments from 15 billion USD to almost 18 billion USD. Lower cash flows have been recorded from the United Kingdom, Hongkong and Canada, whereby China retracted its investments in the strongest way: Here, state-imposed capital controls and strict, regulatory requirements led to a decrease of the exported capital by almost 30 billion USD to 4.6 billion USD – a decline by 84 percent.
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