In order to determine how effective these or other investments are, it is necessary to take into account a number of factors. The World Bank identified four main factors that determine whether it was worth investing in a particular country. These are the population of the country, the environment, relations and the structure, which stimulates personal and corporate investments taking into account natural resources, markets, technologies, and brands in a particular country.
Based on a survey of 750 investors involved in FDI, economists prepared a report, from which it follows that “political stability and security combined with stable laws” is much more important for investors than the size of taxes and labor costs in those countries where invest their money. The report also shows that a number of countries, mainly developed, have earned a high reputation and competitiveness, which allows them to receive the lion’s share of FDI.
The Countries with the Biggest Volumes of Real Assets Investments
The United States turned out to be the most investment-attractive country in 2018, where commercial property worth € 367.921.8 billion concluded. Analysts from international consulting company Knight Frank report this in a Wealth Report study.
The second place was taken by Great Britain with a cumulative investment in real estate of € 67.541 billion. Germany is closing the top three, where investors have invested € 61.320.3 billion. On the fourth line is France with € 39.102.8 billion, and China is on the fifth (€ 28.438.4 billion). Russia took the 27th place with an indicator of € 1.777.4 billion, it is specified in the study.
The most popular in 2018 among investors in all countries was office property. It accounted for 36% of the total transaction volume, or € 293.271 billion. The apartments accounted for 22% (€ 179.517.4 billion), shopping facilities – 17% (€ 135.971.1 billion), and warehouses – 15% (€ 126.195.4 billion). Another 7% of transactions last year were concluded with hotels (€ 55.099.4 billion) and 2% with nursing homes (€ 17.774 billion), analysts explain.
The volume of investment transactions in the global commercial real estate market in 2018 reached € 651.417.1 billion, which is 4% more than in 2017 (€ 601.649.9 billion). This was previously reported by analysts of the international consulting company JLL.
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