Inflows by Region
Domestic investors purchased 42% of the £61.1bn investment property transacted during 2022. Inbound capital from cross-border investors totalled £35.3bn, which was marginally higher than cross-border investment levels in 2021. In Q4 2022 alone, £5.7bn of property was purchased by cross-border investors.
Inbound Capital by Source
Source: CBRE Research 2022, Real Capital Analytics.
After domestic investment, North America was the second largest source of capital for investment, totalling £13.9bn. North America accounted for 23% all capital invested and 39% of inbound capital in 2022, but North American investment was 18.6% below 2021 levels. Europe was the third largest source of capital with £10.4bn, representing a 29% share of inbound investment. Asian investment at £8.1bn was more than double the level seen in 2021, representing 23% of inbound capital.
Share of International Capital in Investment Volumes
Source: CBRE Research 2022, Real Capital Analytics.
Inflows by Sector
£13.6bn of inbound capital was invested into UK office assets in 2022, which was a 22% increase compared with 2021. The residential sector attracted the second largest amount of capital from cross-border investors throughout 2022 with £7.5bn. In Q4 alone, 67% of inbound capital was for residential assets. Cross-border investors purchased £7.3bn of industrial assets in the UK during 2022, but 56% of investment in this sector was still accounted for by domestic investors. Inbound capital for acquisitions in the retail sector totalled £3.6bn in 2022, a 48% increase compared with 2021.
Transaction Volumes by Sector
Source: CBRE Research 2022, Real Capital Analytics.
Inflows by Location
Other parts of the UK attracted more inbound capital than London throughout 2022. The Rest of the UK attracted £20.3bn of investment throughout the year compared to £15bn for London, with the share of inbound capital being 58% to 42%, respectively. However, London’s share of cross-border investment increased compared with 2021, up 46% on last year’s level.
Share of Inbound Capital by Location of Acquisition
Source: CBRE Research 2022, Real Capital Analytics.