The March 2016 Investment Intensity Index reports real estate investment activity at near-record levels. Surpassing other potential capital-return opportunities and dodging economic turmoil, global real estate investment continues to skyrocket at a profitable rate. In 2015, the total direct real estate investment columns reached $705 billion only 7 percent below the record high of $758 billion in 2007.
Far above cities such as Shanghai and San Francisco, Boston sits high atop the investment charts as one of the most profitable New World Cities. A New World City is essentially one that makes up for its comparatively small stature by punching above its weight. Opposed to Established World Cities such as London or New York, and Emerging World Cities like Beirut, this happy-medium metropolitan class is the ideal combination of prosperity and efficiency. Investors are looking to place their stakes in these smaller, more innovative cities with transparent, open markets.
Boston stands out in this category for its unparalleled innovation, vibrant technology sector and top-class private and public education systems. For these reasons, China has become one of the leading foreign investors in its real estate market. As one of the most educated classes of buyers, Chinese investors are not only looking to diversify their investments, but also to feel a sense of tangibility in their returns. This makes Boston a perfect market one that is so consistently is on par with the affluence of the country as whole.
The Boston commercial investment market is thriving.