German cities have dominated PricewaterhouseCoopers Emerging Trends in Real Estate Europe 2018 survey.
For the fourth year in a row, Berlin has taken the top spot in Emerging Trends city rankings, further establishing its dominance in the European property market. Fellow German city Frankfurt has risen to second place after a year of solid growth, much of which has come from the financial sector in the aftermath of Brexit.
Tied with Frankfurt is Copenhagen, whose booming residential sector has captured the attention of the international real estate industry. At number four is another German city, Munich, which – while expensive – has remained an attractive market for investors and developers alike.
Emerging Trends Europe is an annual forecast, published jointly by the Urban Land Institute (ULI) and PwC, is based on the opinions of over 800 real estate professionals in Europe, including investors, developers, lenders, agents, and consultants.
One major change to this year’s rankings is the emergence of Luxembourg City as a potential investment destination, with Luxembourg City entering the top 10 for the first time.
The report noted that with GDP growth of 4 per cent, pro-business officials and a professional and transparent market, more and more international firms are willing to invest in the country. With Brexit in the air, the capital of the Grand-Duchy has turned out to be a very attractive alternative for London as mentioned by respondents of the survey.
In addition to its strong financial sector the country is also growing its economy with major investments, among others, in industrial sites, data centres and logistics.
The report also points out that Brexit remains a challenge for the real estate industry. While the degree of Brexit-related pessimism has decreased considerably since last year’s report – and few question London’s long-term status as a destination for global capital – the uncertainty surrounding the terms of the UK’s departure from the EU has been a source of frustration for real estate professionals.
Top Markets for Real Estate Investment and Development in 2018
- Luxembourg City
Article published 13th November 2017