Blackstone invested more in European real estate than in any other region in 2023, as the world’s largest commercial property owner picked up bargains from market turmoil and distressed sellers. 

Real estate deal-making collapsed this year as sharp rises in interest rates strained a sector heavily reliant on cheap debt. Deal volumes were down by half in the third quarter, according to MSCI data. 

Blackstone cut back its total spending on new property investments from about $47bn in 2022 to about $9bn in the first three quarters of 2023. Unusually, however, it allocated more than 55 per cent of its global investments to European assets, including the UK. The group normally invests most in the US, and would typically allocate 20-30 per cent to European real estate.