Since the turn of the new millennium, there are positive trends indicating increasing interest in real estate as an asset class, especially by foreign investors. Despite the fall in real estate investment activities during the global financial crisis (Newell, Adair and McGreal, 2010), the momentum picked up shortly after that with renewed interest in cross-border investment activity by a wider range of investors and changing geographies. Also, the entrance of more significant market participants (Sovereign Wealth Funds, Endowment Funds, Investment Banks, etc.), the development of new real estate investment vehicles and the availability of debt financing also implies significant increases in available funds and interest in real estate investments. 

Furthermore, real estate investment especially the cross-border investment is mostly concentrated in prime locations, particularly the office markets, in the major global cities of London, New York, and Tokyo. This investor sentiment towards the prime location is enhanced in periods of crisis and uncertainty, for example, the 2007 global financial crisis. Existing studies argue that this trend results in a reduction in real estate diversification benefits especially in the international context as well as yield compression due to the availability of limited stocks. However, the established global cities continue to attract significant investment flows. This resilience of the global cities in attracting international real estate capital flows, albeit the increasing significance of real estate capital flows into emerging markets, has rekindled interest on the drivers of real estate capital flows and the performance of real estate markets in the global cities particularly the office market. Similarly, the increase in global uncertainties due to socio-economic and political trends, for instance, BREXIT, global conflicts and de-globalisation agendas highlight the need for more insights on the behaviour of international real estate capital flows.

This research aims to identify and evaluate major factors influencing global capital flows and investments in real estate with specific reference to office markets in global cities. There is an extensive body of research pertaining to factors driving global real estate capital flows. However, this body of research mostly focuses on country-specific (pull) factors with little or no consideration for the role and significance of global factors on real estate capital