The UK was the top destination for global cross-border capital in H2 2023, attracting US$8,417m of investment, according to Colliers’ latest Global Capital Flows report.
The company said liquidity, transparency and pricing factors propelled the UK to the top spot, with the US in second place and Japan in third.
In terms of regional split, APAC performed the best, with volumes reaching 91% of their 10-year average, while North America and EMEA recorded volumes of 68% and 52% respectively.
John Knowles, head of UK national capital markets at Colliers, said: “It is no secret that the UK investment market had a difficult year in 2023, however it is encouraging that global investors have recognised the growth and opportunities that we expect to see over the coming 12 months. With significant repricing over the last 12 months now turning to price stabilisation we now expect particularly strong recovery in the living and industrial sectors.”
Damian Harrington, head of research for global capital markets and EMEA at Colliers, added: “Fortunately, central banks made significant progress in capping inflation towards the end of 2023, which has led to broad sentiment that interest rates have peaked. However, rates are expected to remain elevated into the year. Furthermore, geopolitical tensions, potential disruptions in Middle Eastern supply chains, and election uncertainty may impact our outlook for 2024.”
