Europe was the top pick for global capital investors in Q1 2024, according to Colliers’ latest analysis of cross-border global capital flows.
For the second quarter on the bounce the UK held the number one spot with the US ranked second, China third and Japan fourth.
Seven of the world’s top 10 cross border capital destinations were located in EMEA with the region attracting $9,781m in Q1 – 55% of the global cross-border capital (standing assets) total.
Germany (5), France (6), Spain (7), Belgium (8), Netherlands (9) and Ireland (10) made up the rest of the top 10.
Damian Harrington, head of research – global capital markets and EMEA at Colliers, said: “We’re seeing some key sectors grow strongly, notably I&L and hotels. I&L matched its five-year average at the end of March, while hotel investment surpassed its five-year maximum by the end of Q1. The strength of these sectors is helping to create bright spots across Europe, with activity in France, Spain and Portugal picking up.
“Although the economic outlook for Europe remains weak, unlike APAC and North America, this is supporting the case for bigger bank rate cuts in Europe in the second half of 2024. This will improve spreads to all-sector yields/cap rates in EMEA, improving the attractiveness of the market to global cross-border capital.
“In the meantime, higher rates for longer in the US will strengthen the US dollar. This could increase the share and quantum of US global cross-border activity over the remainder of the year – signs of which are already visible in the Q1 figures.”
