According to a report by Real Capital Analytics, (RCA) overseas investors in office buildings and retail space became net sellers of properties during the first 7-months of 2019. In fact, direct acquisitions by foreign investors plunged by 37 percent, compared to the same period last year.
The report notes that the pullback was not a function of capital from any one region halting purchases. Instead, it was a function of most buyers from each major region of the world purchasing less than last year.
A slowing Chinese economy and tighter controls of capital outflow are believed to be major factors in the drop of foreign investments into the commercial property sectors, said RCA.