Los Angeles has pipped London to become the second most active city by real estate sales in the first quarter of this year, according to a ranking revealed by Estates Gazette.
The list, compiled by international data firm Real Capital Analytics and released on EG’s global property investment website, shows that LA saw just over USD7 billion worth of sales activity over the three month period compared to USD6.4 billion in London.
New York topped the league of the top 30 metropolitan areas in the world for sales activity comfortably with volumes equalling a massive USD14.2 billion in the first quarter of the year, double that of its closest rival.
The United States dominated overall with South Florida shooting up into 5th place with sales worth just under USD5 billion.
Washington DC, Boston, Denver and Chicago also all feature in the top 10.
Emily Wright, global editor at Estates Gazette, says: “In an uncertain world, the United States continues to perform extremely well when it comes to real estate investment and development activity.
“North American cities dominate this latest league suggesting they are among the most attractive in the world among both domestic and overseas investors.”
Tom Leahy, director of market analysis, Real Capital Analytics, says: “The first quarter investment volumes show New York remains the biggest real estate market in the world, but in a change from the pattern established since the end of the financial crisis, LA has leapfrogged London to take second place.
“This emphasises the worse than average start to the year in London, where volumes are down 45% versus Q1 2015.
"The EU referendum is causing some investors to take a breather after a record 2015, but other factors such as record pricing and external macroeconomic risks have also had a negative effect on market activity.”
The Real Capital Analytics research then reveals the top 10 cities in the world based in cross-border investment volumes and lists the top five spenders in each one.