New York pips London in property investment -data

LONDON, Oct 5 (Reuters) - New York beat London to the top
spot for global commercial real estate investment in the year to
Sept. 30, research showed, but both cities are facing rising
bearishness from investors worried by the prospect of economic
headwinds.

Property consultancy Cushman & Wakefield said investment
volumes in New York totaled $29.7 billion in the period, while
in London they hit $27.2 billion. Investors have preferred the
mature U.S., European and Asian cities for their defensive
qualities as the global economy teeters back from recession.

The list of top five cities for property investment was
rounded out by Tokyo, Paris and Hong Kong, with the U.S.-heavy
next five including Los Angeles, Washington DC, San Francisco,
Singapore, and Chicago, C&W said.

"The next 6 months is likely to see increased levels of
capital looking at the top ranked cities as investors continue
their flight-to-quality and look for safe opportunities in core,
regulated markets," C&W said.

C&W expected the next 12-18 months to see investor interest
spreading up the risk curve.

However, even in top-ranked cities, investors' are focused
mostly on the best quality assets, while a heavy veil of caution
hangs over those regarded as secondary, which means they are
outside of the main business hubs and are harder to tenant.

On Oct. 3, a survey by U.S. law firm DLA Piper showed 70
percent of U.S. commercial property investors were bearish on
that sector's outlook for the next 12 months.

In London, the post-recession rebound in property prices has
faded away , while office and retail sector
developer confidence has been undermined by ongoing global
economic woes, which has also sapped confidence among potential
tenants.

"With investors likely to stay risk-averse, many are
expected to remain focused on the top-ranked cities in the year
ahead and pricing for the best space is likely to increase
further in all regions, with investors and occupiers facing a
shortage of quality space in the best locations," C&W said.

The British economy is forecast to grow 1.1 percent in 2011
and by 1.5 percent in 2012, while the U.S.
economy is seen up 1.6 percent in 2011 and 2.1 percent in 2012.

"The opportunities for the less risk-averse will therefore
be split between creating modern space in top cities or finding
the next tier of cities and city locations to benefit from
supply shortages in the core," the property consultancy said.

Offices investment was topped by London, New York, Paris,
Tokyo and Washington DC, while investment in retail property was
centred on Hong Kong, Rhine-Ruhr in Germany, New York,
Manchester and London.

The following table shows investment volumes by city for the
year to end-September 2011.
City Volume Yr-Yr Pct Change
New York $29.7 million 165.5 pct
London $27.2 million 2.4 pct
Tokyo $18.1 million -12.6 pct
Paris $17.7 million 41.1 pct
Hong Kong $16.4 million 34.3 pct

(Reporting by Andrew Macdonald; Editing by Hans-Juergen Peters)