UK Continues to be Leading Capital Destination for Cross Border Investors
Posted by Colliers on 16th September 2024 -
Colliers’ latest Global Capital Flows Insight shows that greater certainty around rates, pricing and capital values, has seen the market continue to stabilise, with the UK continuing to attract the highest volume of global cross border capital at US$20,618 million for the rolling 12 month period.
- This positive outlook is despite global investment volumes remaining at the lower end of the 5-year average through Q2-2024.
- Five EMEA markets (UK #1, Germany #3, France #5, Spain #6 & Netherlands #10) sit in the Top 10 global capital destinations, attracting 39% of total global cross border capital (standing assets) – 12 months rolling (Aug 23 – Aug 24).
- Multi-family investment by value leads globally, but industrial and offices remain strong. Global office investment market share is showing signs of bottoming out, accounting for 22% of all activity on a 12-month rolling basis to August 2024, the same share as a year earlier.
In terms of global real estate fundraising, investors continue to pivot to beds (residential and hotels) and sheds (industrial) – with very strong hotel fundraising, in particular, signalling a continued renaissance for this sector.
John Knowles, Head of UK National Capital Markets at Colliers, comments: “A renewed sense of optimism has seen investment volumes stabilise, and indeed tick upwards in some markets such as hotels and student accommodation. With the global market continuing to recover, it is particularly encouraging to see that the UK continues to be the top choice for global investors looking to place capital, and we expect to see further opportunities in the months ahead with stronger prospects for UK economic growth and lower interest rates.”
Damian Harrington, Head of Research, Global Capital Markets & EMEA adds: “There will be moments of market volatility resulting from the normalisation of global interest rates, but the path to recovery remains on target. Global rate cuts signal positivity for real estate markets. While 2024’s market gains will be moderate, 2025 will see a much greater spread to yields to emerge, opening up more of the market to buyers and vendors as valuations adjust.
“As real estate investment drivers improve, appetite is also rising. Global fundraising levels stabilised further in Q2, as the number of fund closings and aggregate capital raised increased to a 12-month high.”
Top 10 Global Cross Border Capital Destinations – Standing Assets: 12 Month Rolling
Cross-border total, US$ mn
1 United Kingdom 20,618
2 United States 17,057
3 Germany 9,908
4 Japan 9,249
5 China 7,307
6 France 6,118
7 Spain 5,348
8 Australia 4,863
9 Canada 3,836
10 Netherlands 3,564
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