Leading Indicators | UK: Europe’s prime destination for financial services investment

Written By:
Khadija Hussain, Knight Frank
1 minute to read

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Here we look at the European leading indicators in the world of economics.

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The UK remains Europe’s #1 location for foreign finance investment

The UK was the strongest performing European market for FDI into financial services in 2023, securing 108 projects, up +42% y/y. London also maintained its position as the top European city for financial investors. Looking ahead, 75% of investors anticipate the UK to retain or improve its level of financial services attractiveness over the next 3 years.

Net migration projections raised by 70,000 per year

The ONS expects the UK population to rise by +9.9% in the next 15 years, primarily driven by migrant flows, offering a demographic advantage over G7 peers like Germany, Italy, and Japan. Long-term net migration is set to rise by 315k annually, up 70k from the ONS’ previous estimate. This expected rise may further boost the UK’s growth potential.

Global geopolitical risk rises +51% m/m

The Geopolitical Risk (GPR) index has increased by +51% m/m in April to its highest level since January 2024, but remains below the recent peak in early 2022, following the outbreak of war in Ukraine. During periods of elevated geopolitical tensions, safe-haven assets, including commercial real estate, typically see renewed demand.

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