Private investors were the most active buyers in global commercial real estate investment in 2022, says a new report by Knight Frank. The year saw a significant $455 billion invested, making for 41% of the total investment.
The Wealth Report of Knight Frank said that the number represents private investors’ highest share of global commercial real estate on record, and is the first-time private investment has surpassed institutional investment. The year 2022 was the second strongest year on record for commercial real estate investment volumes among private investors, with investors capitalising on repriced assets and encouraging currency positions. The year saw $1.12 trillion global commercial real estate investment, Knight Frank’s flagship report said.
Private investors and private capital refer to investment from family offices, private individuals and privately held companies.
The US, UK, Germany, Canada and France were the top destinations for private capital in 2022. However, of the top 10 destinations, the UK (with an increase of 1%) and France (with an increase of 21%) were the only countries to see year-on-year increases in investment from private sources. The US ($302 billion), Canada, France, Germany and the UK made up the top five sources of private investment, with private capital from France increasing investment by 27% in 2022.