What is the value of the investable real estate stock in key global cities? This question is relevant to investors pursuing a global diversification strategy focused on core real estate in global cities. This ViewPoint presents the first-ever globally consistent estimates of real estate market size at the city level—utilizing the OECD’s Functional Urban Area measurement of city size. The report also examines the relationship between real estate market size and real estate investment flows.

Among cities with a minimum threshold of $10 billion real estate investment inflow by year, London, New York and Dallas attract a significantly higher level of investment relative to their market size, according to CBRE Research. These are super-liquid markets. By contrast, Tokyo, which stands out as the world’s single largest real estate market, attracts less investment than its market size would suggest, indicating unlocked investment potential.