28 September 2020
  • Global capital to the U.S. multifamily sector in H1 2020 decreased by 49.2% year-over-year to $3.1 billion, as the COVID-19 crisis weighed on investment activity.
  • Q2 volume, which fell nearly 80% year-over-year, accounted for most of the H1 decline.
  • Canada, the perennial leader in U.S. inbound capital, accounted for more than half of inbound multifamily investment volume in H1. Denmark, Israel, Switzerland and the U.K. rounded out the top five.
  • Investment managers were the largest buyers, accounting for 35% of global investment in U.S. multifamily assets in H1. Institutional buyers took a 26% share, while property companies accounted for 19%.
  • New York City was the only market with year-over-year growth in global capital (+641%); however, this was largely the result of two megadeals totaling $827 million.
  • Global investors have a distinct preference for large assets. Nearly half of cross-border capital to the U.S. multifamily sector in H1 was for assets priced at more than $200 million. Global investors also overwhelmingly preferred mid/high-rise assets over garden properties (79% vs. 21% share).
  • Despite less demand from foreign investors due to the current downturn, low hedging costs in the U.S. should help accelerate multifamily sales as deal activity increases.

FIG-3-US-Inbound-H1-2020_Sitecore Assets_Main-chart

Note: All data presented is based on real estate transactions valued at $2.5 million and above. Volume includes direct multifamily property acquisitions only (as opposed to other types of investment such as land acquisitions and new development, REIT stock purchases, capital partnerships, etc.). Portfolios include assets acquired through entity-level deals. All figures in U.S. dollars.
Source: CBRE Research, Real Capital Analytics, Q2 2020.

 

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U.S. Inbound & Outbound Investment Trends H1 2020

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Inbound capital to the U.S. dropped 34% in H1 2020, as global lockdown measures and market uncertainty stemming from the COVID-19 crisis weighed on investment activity.
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U.S. Multifamily Inbound Investment Trends H2 2019

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Inbound capital to U.S. multifamily in H2 2019 decreased by 27.3% to $10.7 billion due to a steep decline in portfolio deals. Inbound capital for single-asset deals increased by 3.8% to $6.1 billion.
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