LONDON-Cross-regional investment in European real estate doubled to $12.7 billion between first and second half 2010, reaching its highest since the start of 2008, according to realtor CB Richard Ellis. Capital from outside Europe accounted for almost half of all international activity, but was narrowly focused on London and Paris.

US investments in Europe grew to $7.6 billion in 2010, more than 40% of all cross-border investment and mainly comprising property funds eyeing core or value-add opportunities. Canadian investors, largely absent in 2008 and 2009, returned, investing $2 billion, with a heavy focus on Central London by institutions and pension funds buying core assets. Mid- and Far-Eastern investors accounted for 41% of all cross-regional activity.

The realtor predicts a further broadening of non-European investor activity but sees the focus staying on London and Paris, which accounted for nearly $11.3 billion of last year’s investment. Only a relatively small number of opportunity-driven transactions are expected in other European markets.