【World Property Journal】Impacted by COVID, U.S. Inbound Multifamily Investment Dips in 2020

According to new research by CBRE, international property investment in U.S. multifamily assets in H2 2020 fell by just 5% year-over-year to $5.7 billion, despite continued COVID19 international travel restrictions and market uncertainty.

For the full year, international investment in U.S. multifamily assets fell by 22% to $9.7 billion. Considerably lower hedging costs made global capital more competitive, helping to mitigate the decline from 2019 levels.

The largest deal in H2 2020 was London-based GSA Group's acquisition of a 27-asset student housing portfolio in 18 states and reportedly valued at $700 million. Student housing assets accounted for 43% of total international U.S. multifamily investment in H2 and 30.2% for the full year.

International capital accounted for 6.4% of all U.S. multifamily investment in H2 2020 and 6.7% for full-year 2020--below the 2015- 2019 average of 8.6%.

Canada, the perennial leader in U.S. inbound multifamily capital, accounted for 64.1% of international U.S. multifamily investment in H2. The U.K., Switzerland, Germany, Bahrain, South Korea and Japan were distant followers.

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