Europe dominates with seven of the world’s top 10 cross border capital destinations standing assets

Despite global investment volumes remaining at the lower end of their 10-year average in Q1, signs of improvement were seen across EMEA with European markets dominating the top 10 destinations in receipt of global capital – according to our latest analysis of cross-border Global Capital Flows – Q1 2024.

Pricing stability saw the UK hold its number one spot for the second quarter running. It was joined in the Top 10 by Germany (#5), France (#6), Spain (#7), Belgium (#8), Netherlands (#9) and Ireland (#10) – with EMEA collectively attracting US$9,781 million in Q1, 55% of the global cross-border capital (standing assets) total. 

“We’re seeing some key sectors grow strongly, notably I&L and hotels,” commented Damian Harrington, Head of Research | Global Capital Markets & EMEA. “I&L matched its 5-year average at the end of March, while hotel investment surpassed its 5-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.”

Harrington continued: “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.”