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Global cross-regional capital flows between North America, Europe and Asia-Pacific totaled US$30.5 billion in the first half of 2023, a 52% decrease compared to H1 2022, according to CBRE’s report. Elevated interest rates, softer real estate fundamentals and a mismatch in pricing expectations of buyers and sellers limited global investment activity during this period.

Cross-regional capital flow from the U.S. to Europe dropped significantly year over year (YOY) resulting in an overall 68% YOY decline for Europe’s total global cross-regional capital inflow; however North American investments increased by 5%, largely due to two large acquisitions by Asian investors.

Richard Barkham, Global Chief Economist for CBRE commented on these trends saying “Global investors are likely remain cautious throughout the remainder of this year due to high interest rates and economic uncertainty; yet inflation appears have peaked globally with central banks either at or near their rate hiking cycles – leading us anticipate that the global investment market will begin recovering as early as H1 2024.”