London attracts highest level of cross-border investment: JLL

Cross-border investment rose from 27% in 2010 to 31% in 2011, with London being the most active city globally, according to Jones Lang LaSalle's Year End 2011 Global Capital Flows report.

The UK capital reported $24 bn of investment last year, while New York attracted $19 bn, up from $11 bn in 2010. Paris, Tokyo and Singapore completed the top five.

Cross-border purchases as a proportion of the total remained very stable between Q3 and Q4 at 30%. However, on an annual basis, investors have been more bullish, lifting the level of cross-border activity to almost $125 bn.

'This is a firm indication that investors are prepared to increasingly look outside their own countries for suitable opportunities when macro circumstances allow,' said Arthur de Haast, lead director of the International Capital Group at JLL.

In 2012, transactional volumes are expected to match last year's figures, but downside risks remain prevalent, De Haast added. 'Cross-border activity only tends to do well when the global economy is supportive. If investor sentiment turns more negative, then it will be cross-border and inter-regional flows that will be the first casualty.'