The United Kingdom has reaffirmed its leadership as the top destination for cross-border property investment in Europe, the Middle East and Africa (EMEA), according to Colliers’ latest Global Capital Flows H1 2025 report. London’s office sector is once again at the heart of investor activity, helping Britain attract more international capital than any other country in the region.
UK at the Forefront of EMEA
Colliers data show that the UK captured around $20.9 billion (≈€19.2 billion) in cross-border inflows over the twelve months to mid-2025 — the largest volume in the EMEA region. Germany followed with $15 billion (≈€13.8 billion), while Spain and Italy both recorded strong results of €7.7 billion and €7 billion respectively. France also ranked high with €6.9 billion, though investors there remain cautious due to slower economic growth.
Damian Harrington, Head of Research for Global Capital Markets and EMEA at Colliers, noted that the UK’s strength lies not only in the volume of capital but also in the quality of its assets:
“EMEA’s sector dynamics are shifting. The resurgence of office investment reflects targeted confidence in core assets, while industrial continues to deliver steady returns.”
Offices Regain Momentum
Globally, multifamily assets remain the largest sector for cross-border capital. But in Europe, offices have retaken the lead, driven by London’s deep liquidity and more transparent repricing compared to continental markets. International investors are once again targeting landmark office properties in central London, while regional hubs such as Manchester and Birmingham are attracting flows into Grade A towers offering yields that remain competitive by European standards.
Industrial and Logistics Remain Attractive
Colliers also reports that industrial and logistics properties continue to see strong demand, particularly in the UK and Germany. E-commerce growth and supply chain diversification are underpinning this sector, with Asian and Middle Eastern investors especially active. Warehouses and distribution hubs tied to ports and transport corridors remain among the most resilient European assets.
Southern Europe’s Rising Profile
Spain and Italy have outperformed their five-year averages, buoyed by strong demand for offices, logistics and hospitality. Madrid and Barcelona remain magnets for international capital, while Milan and Rome are seeing selective deals in hospitality and mixed-use projects. In both markets, tourism, demographics and improving sentiment are supporting investor confidence. By contrast, the Netherlands continues to lag, with Amsterdam’s office sector still waiting for clearer repricing signals.
Capital Sources and Investment Discipline
The United States remains the largest global exporter of real estate capital, with American institutional and private equity funds continuing to dominate. European investors from France, Sweden and the UK itself are also increasingly active. This makes Britain unique in being both the region’s leading importer and exporter of real estate capital.
Colliers stresses that pricing discipline is critical. Investors are willing to pay premiums for stabilized prime offices in London and top-tier German logistics, while demanding higher yields for secondary or older stock. In southern Europe, capital expenditure requirements are often built into negotiations, particularly for older hospitality or office assets.
Outlook for 2025
Colliers forecasts that transaction volumes will accelerate in the second half of 2025 as financing costs ease and pricing transparency improves across asset classes. Spain and Italy are expected to remain outperformers, while Germany and France stabilize as leasing markets recover.
Other industry leaders share a similar view. JLL recently emphasized that investors are concentrating on “markets with scale, liquidity and transparent governance”, while CBRE describes 2025 as a year of “selective repositioning” rather than broad recovery. Both point to the UK as the most liquid and transparent market in EMEA, giving global investors confidence to deploy capital.
As Colliers summarized:
“The trends in the first half of the year do not represent a broad recovery but a selective repositioning.”
For investors, the message is clear: EMEA remains one of the world’s most dynamic destinations for cross-border real estate, but the UK continues to set the benchmark. With clarity on repricing, resilient office demand and deep liquidity, Britain has reasserted itself as the leading hub for global property allocations.
