UK the world’s most popular destination for cross-border capital
There is no doubt that real estate investment volumes in the UK are substantially down on their pre-Covid-19 levels, but they don’t suggest that investors are voting with their feet. The volume invested in the UK this year is almost double the level invested in the next most active European market, and according to MSCI the UK has been the most popular destination in the whole world for cross-border investment in 2025, excluding land deals.
The outlook for the UK economy and policy might be relatively uncertain, but the country remains one of the most liquid and transparent real estate markets in the world. Possibly more importantly at the moment, the performance metrics are also looking good on a relative basis, with average total returns of over 10% on retail and industrial property, record levels of rental growth in some office markets, and high prime yields across most asset classes.
Considering all of the above, when asked the question, “why the UK?”, our response is simple; “why not?”. The UK does not stand apart from its peers, but in the current environment, that is not a bad place to be. Whatever happens at November’s budget, this is unlikely to change.