According to JLL’s Private Wealth Tracker 2025 report, the United Kingdom continues to assert its global leadership in commercial real estate (CRE) investment, driven increasingly by private wealth. London is the number one global destination for private wealth investment into real estate, attracting a remarkable US$87 billion between 2013 and 2024. This surpasses both Hong Kong and New York, cementing the UK capital’s unrivalled appeal among high-net-worth individuals, family offices, and private businesses. At a time when global capital flows are being re-evaluated amidst shifting macroeconomic conditions, the UK stands out for its resilience, regulatory transparency, and deep liquidity, particularly in its core real estate sectors. As institutional investors reassess risk exposure, private wealth is moving decisively into the spotlight, demonstrating both strategic intent and financial firepower.

Private Wealth on the Rise

Private wealth as defined by JLL encompasses high-net-worth individuals (HNWIs), family offices, and private businesses actively investing in CRE. Globally, this segment has transacted over US$1.5 trillion in direct real estate acquisitions over the last decade. While the United States remains the most active single market, the UK ranks prominently as both a source and a destination of capital, with private investors contributing US$81 billion in global investment volumes from within the UK.

In terms of inbound capital, the UK is the top cross-border investment destination, attracting US$73 billion in private wealth from around the world. This positions the country not only as a domestic leader in real estate but also as a magnet for international investors seeking stable returns and a favourable legal environment.

Sector Preferences and Strategic Shifts

In the UK, private wealth investors have shown a strong affinity for traditional asset classes such as premium office buildings, luxury retail, and hotels. The return-to-office trend, combined with attractive repricing of core office assets, has rekindled interest in central business district offices particularly in London. JLL’s sentiment tracker notes that “there is strong investor interest in the office sector in United Kingdom,” signalling renewed confidence in urban commercial assets.

Hotels also represent a robust area of interest, buoyed by the resurgence of business and leisure travel. The report highlights the UK as one of the top hotel investment markets in EMEA, underpinned by global brands and luxury hospitality operators targeting key cities.

At the same time, demographic trends and urbanisation are accelerating investment in living assets including build-to-rent and student housing. The UK, alongside Canada and Japan, is noted as a leading destination for private wealth investment in residential property, reflecting the increasing importance of housing as a stable, income-generating asset.

Notable UK Transactions

Several high-profile transactions underscore the strategic significance of London in particular. One example includes the US$23 million acquisition of 44 Old Bond Street, a historic Grade II listed property currently occupied by luxury jeweller Boghossian. This transaction, conducted by private Middle Eastern investors, marks the first time the building has changed ownership in generations and reflects the enduring appeal of heritage retail assets in super-prime locations.

London’s draw is not limited to retail. Investors from Hong Kong, for instance, have channelled over US$7 billion into London since 2013, primarily in hotel and office assets. The report also cites the family behind Prada acquiring 150 New Bond Street, home to the Miu Miu flagship store, further demonstrating the city's international magnetism.

Why the UK?

The UK’s appeal to private wealth is grounded in several competitive advantages:

  • Transparent legal and regulatory frameworks, which provide clarity and confidence for global investors.
  • A globally recognised financial ecosystem, making it easier for investors to secure financing, manage assets, and repatriate funds.
  • Cultural and educational infrastructure, which attracts HNWIs who maintain personal or family ties to the UK.
  • Resilience and liquidity, with London maintaining its role as a global gateway city, even amidst geopolitical and economic uncertainty.

These factors make the UK not just a market of opportunity but also a safe haven for capital preservation and long-term growth.

The Evolving Role of the UK in Private Wealth Real Estate Strategy

The rise of private wealth in UK real estate reflects a broader shift in how capital is being deployed across asset classes. CRE offers a compelling proposition for private investors delivering risk-adjusted returns, portfolio diversification, and the ability to make strategic plays in a changing global economy. With private wealth expected to continue its upward trajectory, the UK is well-positioned to remain at the forefront of global investment flows. As the Private Wealth Tracker 2025 notes, “the future of CRE belongs to those who can harness the power of private wealth.” In this context, the UK and London in particular is not just keeping pace with global trends, but shaping them.