Global cross-regional capital flows totalled $30.5 billion (€28.4 billion) in the first half of 2023, down by 52 percent from the first half of 2022. The drop is the second consecutive half-year period with an approximate 50 percent decrease in volume.

In its latest Global Real Estate Capital Flows Brief paper, CBRE says that much of the decline in cross-border capital flows is down to less North American capital entering Europe. Europe has traditionally received approximately three-quarters of total global cross-regional investment on an annual basis. But it saw inflows decline by two-thirds year-over-year in the first six months of this year. Despite attractive foreign exchange rates for the euro, $14.7 billion (€13.7 billion) in cross-regional capital inflows to Europe was the lowest first-half total since 2010.

CBRE says high interest rates, softer real estate fundamentals, constrained debt, and a mismatch in pricing expectations of buyers and sellers, are the