Cross-border investment in standing assets was ahead of the five-year average
The United Kingdom was the location of choice for international investors in 2024 attracting in excess of $24.8bn for standing assets – according to Colliers’ latest analysis of Global Capital Flows.
The country attracted 15.8 % of all cross-border investment last year, ahead of the five-year average of 15.3 %. Some $18.8bn of the capital came from outside of the continent, with America being the biggest investor of $15.4bn – the UK also received $5.9bn of investment from within Europe.
Industrial was the top asset of choice with a quarter of inward investment, $6.3bn, invested in the sector, followed by hospitality ($5.5bn – 22 %) and offices ($4.3bn – 18 %).
For development opportunities the UK ranked fifth globally attracting $821m in investment last year.
John Knowles, head of UK National Capital Markets at Colliers said: “The UK retains its market leading ability to attract long term investment and despite now sitting outside of the EU the long-term stability of the country remains attractive. While London has always been a strong draw, there are also significant amounts being invested into the regions as successive governments have established a record for championing the regional cities and regeneration.”
UK investors also spent $10.7bn in overseas investment, with the majority of funds invested in Europe ($7.9bn) and 41 % spent on industrial, followed by 18 % on multifamily and 16 % on hospitality.
Damian Harrington, head of research, Global Capital Markets & EMEA at Colliers, added: “The UK was the significant beneficiary of inward investment globally, with the Bank of England beginning the reduction of interest rates from August supporting the traditional Q4 investment peak across mainstream commercial property as well as the hospitality sector.”