European Real Estate Revival: U.K. Positioned as Leader in Resurgence with Influx of International Capital in 2024

The U.K. is set to lead a European real estate revival in 2024, with international investors flocking back to the region’s property market, new research from Savills suggests. The anticipated fall in interest rates and modest economic recovery are expected to attract overseas investors seeking to take advantage of attractive pricing levels.

According to Savills, U.S., Israeli, Japanese, and Taiwanese investors are expected to spearhead a 20% rebound in real estate investment activity this year, with a focus on Britain, Germany, Spain, and the Netherlands. The U.K. in particular has been highlighted as one of the most heavily discounted markets, attracting attention from investors looking for high return potential.

London has been identified as the top European destination for cross-border investment, followed by cities like Paris, Madrid, Amsterdam, and Berlin. The U.K. is forecast to attract a significant portion of outbound investment from the U.S., with around $13 billion expected to flow into the country in 2024.

After a challenging year in 2023, where higher interest rates and borrowing costs dampened investor sentiment, global cross-border real estate investment saw a significant decline. However, with signs of rate cuts from the European Central Bank and the Bank of England, there is optimism that international investors will return to the market.

Savills predicts that Europe is poised to reclaim its position as a leading destination for cross-border investments in the next 12 to 18 months. With discounted pricing, high return potential, and attractive cities, the U.K. and other European countries are expected to see an influx of capital from international investors looking to capitalize on the real estate resurgence.