Recovering markets will become increasingly popular this year, according to a new report, as a shortage of assets in primary areas combined with a capital-rich European market will see investors move into areas that suffered most during the recession.
The Urban Land Institute and PwC’s Emerging Trends in Real Estate Europe 2015 study lists Dublin, Madrid and Athens in its predictions for the top five investment markets this year.
A majority of investors – 82% – believe a shortage of assets will impact business and so less competitive markets will become increasingly attractive.
Athens, in particular, will see a change in its fortunes as high-risk investors move into the country hit hardest by the economic downturn in order to take advantage of pre-rebound opportunities.
Alternative assets could also see a surge in interest as people look to find more accommodating markets. In Germany and the UK the private rented sector continues to attract interest.
The report also highlights healthcare and logistics as areas set to see more investment in the coming year.
Simon Hardwick, real estate partner at PwC Legal, said: “The wave of capital-rich investors entering European real estate markets is savvy and sophisticated. Their need to preserve and create new wealth will, for some, see a move away from core markets where many feel there is little value to be gained and into assets, developments and cities that give them the opportunity to achieve better returns.
“Smart investments will be the types of property that benefit from population growth, urbanisation, an ageing society and technological innovation.”
