London is surging ahead of global rivals New York, Paris, Berlin, and Hong Kong in attracting foreign direct investment, according to the London Property Alliance.
The most recent Global Cities Survey showed overall foreign direct investment volumes in London, which include corporate relocations, investment into UK companies and real estate transactions, totalled 103 projects and deals in Q3 2023. This is broadly in line with the prior year when 102 projects and deals were recorded.
In comparison, Paris saw a 75% decline in the number of foreign direct investment projects over the final quarter of last year, to 20, while Berlin recorded a 48% decrease to 24 projects. New York and Hong Kong both registered a slight year-on-year decline in Q4 2023 to 42 from 50 and to 29 from 35, respectively.
According to the Greater London Authority, foreign direct investment projects secured in London Q3 2023 represented a total of £1.3bn in capital investment.
The figures underline London’s resilience despite five UK interest rate rises in 2023 and both a mayoral and General Election ahead in 2024.
Charles Begley, chief executive at London Property Alliance, said: “London’s diverse economy and its ability to attract talent from across the world is driving demand for workspace, making it a much sought after asset for overseas investment.
“But we cannot be complacent as increased complexity and uncertainty in planning and policy is adding greater risks, whilst other global cities and asset classes continue to compete for capital.”
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