London Tops Global Real Estate Investment, Surpassing $87B in a Decade

London has officially cemented its status as the world’s leading destination for commercial real estate (CRE) investment by private capital, attracting a staggering $87 billion between 2013 and 2024. The UK capital has outpaced other global financial hubs, including Hong Kong and New York, according to the latest data from Knight Frank.

Global Rankings: London Takes the Crown

Over the past decade, $1.5 trillion in private capital was invested in global commercial real estate. London led the chart with $87 billion in inflows, followed by Hong Kong at $61 billion and New York at $52 billion. This reinforces London’s reputation not just as a financial powerhouse, but also as a consistent favorite for cross-border real estate investors.

Regionally, the United States led overall investment with $604 billion, while the UK came in second with $155 billion. Germany followed with $111 billion. These figures underscore a clear trend: Western real estate markets remain dominant on the global investment landscape.

Sector Breakdown: Offices Still Reign, But Diversification Grows

Investment by sector shows that private capital is shifting focus beyond traditional office spaces:

• Offices still attracted the largest share, at 31% of total investments.
• Residential (Living) sectors claimed 24%, reflecting increasing interest in multifamily and build-to-rent projects.
• Retail followed at 19%, a surprise rebound as retail spaces recover post-pandemic.
• Logistics and industrial assets saw 12%, underscoring e-commerce-driven demand.

The rise in residential investments aligns with trends seen across major metropolitan areas, where housing demand outpaces supply.

The Appeal of London

London’s draw for investors stems from a combination of legal transparency, currency stability, and global connectivity. The city’s commercial hubs, including the City of London and Canary Wharf, remain attractive to sovereign wealth funds, private equity firms, and family offices.

James Roberts, Head of Research at Knight Frank, noted:

“Private capital is increasingly looking for stable, income-generating assets in established markets, and London provides precisely that. Despite geopolitical shifts and Brexit-related concerns, the UK capital remains resilient and highly liquid.”

Private Capital to Play Bigger Role

Private investors now account for a quarter of global real estate investment, and their role is only expected to grow. As institutional investors become more selective, high-net-worth individuals and family offices are stepping in to acquire prime assets.

Real estate advisors are seeing heightened interest from the Middle East and Asia-Pacific, with buyers focusing on trophy assets and value-add opportunities in the UK, particularly London. A weakened pound sterling has also made UK properties relatively cheaper for overseas buyers, further boosting demand.

Implications for Property Markets

The implications are significant for both sellers and developers. London’s ability to attract deep private capital gives it a competitive edge in financing large-scale regeneration projects and urban infrastructure. Furthermore, the sustained capital inflow points to continued price stability and strong rental yields in core locations.

While other cities like Dubai, Singapore, and Toronto are catching up, none have yet matched London’s consistency and volume of private investment over a 10-year period.