CBRE Research's report, 'How much real estate? A global analysis' looks at the relationship between city market size and capital flows into real estate for 122 cities around the world.

The report finds that there is a high correlation between the size of a city’s real estate stock and the volume of investment in that city.

Tokyo is the world’s largest real estate investment market, with a total value of investable real estate of $903 billion, followed by New York ($834 billion) and Los Angeles ($612 billion).

Paris ($434 billion) and London ($424 billion) are the biggest European markets.

Asia Pacific’s five largest cities are Tokyo, Seoul, Osaka, Sydney, and Melbourne, amounting to nearly $2 trillion in total.

Size of the real estate market, by region and city

Source: CBRE Research.

“The amount of stock available in each market is relevant to investors pursuing a global diversification strategy," says Chris Ludeman, global president, Capital Markets, CBRE. 

"Most investors are not pursuing full global diversification, but many have a more tightly defined strategy such as ‘core real estate in global gateway cities’. It is important for these investors to know the relative size of the key investment markets to ensure portfolio balance,” he said. 

Click here to download CBRE's report 'How much real estate? A global analysis'.

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