President Trump’s visit to the UK next week draws into focus the ‘special’ transatlantic relationship at a time of international unrest. The administration’s tariff policies, combined with wider fiscal volatility, are reshaping how and where investors deploy capital, no more so than in real estate and infrastructure.
Timely then, that the State Visit should happen the same week that over 300 will meet in the UK Capital for the Global Investment Summit, part of London’s Real Estate Forum on 17 September.
Global capital flows are shifting. Investors are targeting cities that offer the scale, liquidity, and resilience to weather economic volatility. Cities like Singapore, Tokyo, Toronto and Sydney are capturing interest, with capital also flowing into Middle Eastern hubs such as Abu Dhabi and Riyadh.
Having returned from Opportunity London’s most recent tour of North America, conversations confirmed London continues to stand out. Compounding the narrative that private US investors are looking to London in light of their domestic uncertainty, the general view from the groups we spoke to is that the UK continues to offer attractive opportunities. Despite our national political uncertainty, London remains a strong and liquid market with a track record of strong cross-border investment volumes and returns, global connectivity, depth and breadth of sector and asset class.
Momentum builds
JLL’s August 2025 capital transactions report shows £7.1bn invested in London in the first half of 2025, up 14% year-on-year. Offices accounted for two-thirds, signalling renewed momentum. Retail volumes were up 37% to £3.6bn, industrial investment rose 27% to £3.2bn, and BTR led the Living sector with £2.2bn.
However, for the trajectory to continue, those markets that move fastest to match investor expectations will come out ahead. Global capital is mobile, and reputation alone will not carry London through the next investment cycle.
London’s scale and liquidity remain unmatched across Europe. Investors are drawn to its ability to absorb large-scale capital and to the breadth of investible sectors, from industrial and digital infrastructure to prime office, PBSA, BTR, and co-living.
US activity
US-based student housing giant Landmark Properties has opened a London office to meet rising PBSA demand. And a major Canadian institutional investor is launching an industrial and infrastructure multi-billion-pound fund across London and the UK.
London’s appeal extends beyond conventional real estate. It’s emerging as a key hub for sectors that reflect the next phase of urban growth. Student housing is one such example, with global universities, including New York University, exploring transnational models.
In life sciences, London is playing a leading role within the Golden Triangle. While Oxford and Cambridge remain central, London supports scaling innovation. US-based Longfellow has entered the London market, opening an office and looking at key hubs.
Data centres also attract interest, with AI and data-hungry industries driving demand, though power availability and land access remain barriers.
Reframing the offer to meet investor expectations
Three themes dominated investor feedback. First, sovereign risk matters. Trade tensions, shifting tariffs and political cycles all feed into capital allocations. While Trump’s visit underscores the symbolism of the US-UK relationship, institutions are clear: reassurance will only come if London can offer stability, transparency and clear delivery pathways.
Second, public-private partnerships (PPPs) are back. Many investors, particularly from North America, are used to collaborative models where risk is shared and delivery accelerated. Recent discussions in the UK around the return of PPPs have sparked renewed interest, but clarity is needed. Brent Cross Town, with its shared risk model between Barnet Council and Related Argent, is a prime example.
Third, investor appetite is aligning with changing urban lifestyles. Demand is growing for co-living, experiential retail, and mixed-use schemes. London has the demographic and economic base to support these models, but delivery is the challenge.
Viability remains a concern
Across more than 80% of meetings, one message was consistent: viability is the biggest challenge. High construction costs, infrastructure delays and tax policies are affecting development economics. Planning was viewed as less of a barrier, but London’s cost base is hard to justify.
Public authorities must adapt. The financial assumptions of the pre-COVID world no longer apply. There is recognition of the need for a more pragmatic approach to private capital delivering public outcomes, including affordability, housing diversity, and modern methods of construction.
As with all Opportunity London tours, we heard first-hand how London remains one of the most attractive destinations for global investment. But that position is not guaranteed. We must maintain our edge, simplifying risk-sharing frameworks, offering regulatory clarity, and enabling delivery models that reflect today’s economic environment. The opportunity is real, but not permanent.
Jace Tyrrell is CEO, Opportunity London
