American investors are powering a record-breaking boom in UK commercial property, with US capital now accounting for a third of all cross-border investment into the sector.
According to a new annual report from the British Property Federation (BPF) and real estate data provider CoStar Group, US buyers poured £49.7 billion into UK commercial real estate between 2021 and 2024 — more than double the amount invested the previous year and greater than all other foreign capital combined.
In 2024 alone, nearly half of the 62 UK deals valued above £100 million involved a US buyer, marking a record 33 per cent share of total investment.
The surge has been driven in large part by US private equity firms, including Blackstone, Starwood Capital, KKR and CD&R-backed Motor Fuel Group, which together accounted for four of the five largest deals this year, totalling £5 billion. While activity has concentrated on hotels and mixed-use portfolios, analysts say a late-year uptick in West End office deals signals growing interest in London’s premium office stock.
“Although London continues to dominate, our data shows growing regional appetite for beds, sheds, and increasingly, retail,” said Grant Lonsdale, Senior Director of Market Analytics at CoStar Group. “Living and industrial sectors are attracting strong attention from cross-border investors — and not just in the capital.”
Beyond London, the South East remains a preferred destination for overseas capital, but investment is spreading across the country. The Build-to-Rent (BTR) sector and sustained demand for student housing are drawing more US capital into cities such as Manchester, Liverpool and Birmingham. Over the past several years, the North West and West Midlands have received more international investment than any other regions outside London and the South East.
The industrial and logistics sector remains a firm favourite with international investors, accounting for 24 per cent of all overseas investment between 2021 and 2024 — more than any other asset class.
Melanie Leech, Chief Executive of the British Property Federation, said: “The UK real estate sector is a pre-eminent destination for global capital. With this first annual report, we aim to build a detailed picture of where investment is coming from and what it’s supporting — from BTR and logistics to offices and retail — showcasing the sector’s contribution to economic growth.”
She added that the outsized role of US capital reflects long-standing interest from North American investors. “It may not be surprising to see the US top the list, given the vital role they’ve played in shaping the Build-to-Rent sector, delivering more than 100,000 professionally managed homes.”
With geopolitical and macroeconomic uncertainty continuing to shape investment strategies, the BPF-CoStar report suggests that international confidence in UK real estate remains strong — particularly for institutional capital in search of long-term returns.
As the BPF and CoStar commit to tracking investment flows annually, the property industry will gain unprecedented insights into how overseas capital is shaping Britain’s commercial real estate landscape — from city skylines to regional regeneration.
