Adding up

Total private capital investment volumes since 2008 (US$bn)

62% 41%

Margin by which the total invested by private capital in 2022 is above the 10-year average

Proportion of total commercial real estate investment from private capital in 2022, the first time this has surpassed institutions and a record share

The US, UK, Germany, Canada and France were the top targets for private capital last year. However, of the top 10 destinations, the UK and France were the only countries to see year-onyear increases in total private investment: up 1% to US$14.6 billion in the UK while France, with its resilient economy and relatively low inflation levels compared with the rest of Europe, jumped 21% to US$12.2 billion.

Driving Decisions

Inflation will be a significant factor driving investment decisions in 2023, with 80% of respondents to our HNW Pulse Survey stating that it would influence their investment decisions either significantly (37%) or to some extent (43%).

In order to navigate the higher inflationary environment, investors may pivot towards commercial real estate due to its strong growth potential, particularly in assets with indexation. Nevertheless, there are indications that inflation may already have peaked across most major economies, and we could see its influence on investment choices start to moderate as the year progresses.

Keeping it local

Top cities for domestic private capital in 2022 (US$bn)

US cities remained a target for private buyers in 2022. Of the cities attracting private capital investment, US metropolises accounted for 67% of the total volume, with Paris the only non-US cities to feature in the top 10. While eleventh overall for total private investment (cross-border and domestic) in 2022, London was top for cross-border private capital with US$2.5 billion. Overall, this accounted for 44% of the total private investment into the city and 15% of total global cross-border private investment into cities in 2022.

Private investors from the US were the largest source of capital last year, with US$302 billion invested – more than a quarter of total commercial real estate investment and 66% of private investment. However, investment from US private buyers was down 3% year-on-year. Of the top 10 sources of private capital last year, investors from France and the Chinese mainland were the only buyers to increase investment in 2022, up 27% and 25% on the previous year to US$13.8 billion and US$6.3 billion respectively. For a look ahead to what’s next for private capital, see the next page.

Global outlook

Top cities for cross-border private capital in 2022 (US$bn)