London is still the most attractive European city for real estate investment, according to CBRE’s latest Investor Intentions Survey.
According to the annual report, which London has topped for six consecutive years, 17% of respondents consider the UK capital their preferred destination for real estate investment.
| City | % of respondents rating city top investment destination |
|---|---|
| London | 17 |
| Berlin | 15.8 |
| Madrid | 8.4 |
| Amsterdam | 7.3 |
| Paris | 5.4 |
| Warsaw | 4.9 |
| Oslo | 4.7 |
| Prague | 3 |
| Stockholm | 2.9 |
| Frankfurt | 2.6 |
However, Germany once again retained its top spot as the most attractive country for real estate investment in EMEA, leaving the UK in second place.
Both countries increased their score by five percentage points, with investors citing their high liquidity and transparency as the main reasons for their attractiveness.
Meanwhile, some of the gateway cities in Europe, including Hamburg, Milan and Munich, have dropped out of the top 10 as investors cited difficulty in buying real estate, low availability and pricing as the greatest obstacles to investment.
| Country/region | % of respondents rating country/region top investment destination |
|---|---|
| Germany | 22 |
| UK | 20 |
| Nordics | 10 |
| CEE | 10 |
| Netherlands | 9 |
| Spain | 8 |
| Poland | 6 |
| Western Europe | 5 |
| France | 5 |
| Italy | 3 |
The study also showed that 41% of investors were looking to spend more in real estate in 2017 than they had in 2016, and that 85% intended to spend at least as much as they did last year.
More investors were also interested in good secondary and value-add assets. About 64% of investors were also “actively pursuing” opportunities in alternative sectors.
Jonny Hull, managing director of EMEA Investment Properties at CBRE, said: “Europe remains a key target for property investors globally and the economic outlook for the European economy remains positive.
“While the core markets of the UK and Germany remain the largest investment destinations, markets such as the Nordics and CEE are increasingly important components of global investment strategies.
“Furthermore, cities such as Madrid and Dublin are both ranked within the top 15 most attractive European investment destinations, highlighting the popularity of Europe’s recovery markets as investors seek value-add investment opportunities.”
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