Leading Indicators - Capital shifts and currency resilience
Here we look at the leading indicators in the world of economics. For in-depth analysis into commodities, trade, equities and more.
Sterling hits 3-year high against the dollar
Sterling has appreciated to around $1.36, its highest level against the dollar since early 2022, driven by broad US dollar weakness and signs of resilience in the UK economy. While this may deter some USD-accretive investors, UK CRE has continued to attract capital, supported by growing interest from key global markets. Japanese investment is up +146% YTD, Australian inflows have surged +612%, and UAE capital is up +1,631%.
Long-term institutional capital steps back into UK CRE
Pension fund investment into UK commercial real estate surged +366% YoY in H1 2025, with Sovereign Wealth Fund inflows also rising +140%. This renewed momentum signals growing conviction from long-term capital, as institutional investors re-enter the market in scale. Oil-backed sovereign funds, in particular, may diversify into CRE to hedge geopolitical risk and secure stable, long-term income.
AI adoption in Real Estate remains low, but the opportunity is growing
Only around 25% of real estate businesses are currently using AI, according to the latest ONS BIC survey. While uptake has been slower than in tech-forward sectors, this also highlights significant scope for future growth. As AI technology continues to advance, it presents a clear opportunity to transform how the built environment is managed, from optimising asset performance to enhancing the way occupiers and customers interact.
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