London has been ranked as the most attractive European city for real estate investment for the sixth consecutive year by CBRE’s annual Investor Intentions Survey.
17% of respondents cited London as their preferred destination for real estate investment with Berlin jumping to second place from fourth in 2016.
In terms of the immediate challenges impacting the acquisition of real estate assets, availability of product and pricing of assets were considered the greatest obstacles facing investors this year.
This is reflected in the results for some of the gateway cities in Europe, with Hamburg, Milan and Munich dropping out of the top 10, and Paris retaining a top-5 position as one of Europe’s most attractive cities, expressing keen interest in the city despite aggressive pricing and potential political risk.
Meanwhile Oslo and Stockholm were prominent new entries in the top 10 most attractive investment cities, reaffirming the strong investor interest in the Nordics.
Ten most attractive cities for investment in EMEA:
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.
“Whilst 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.”
Whilst London was ranked the most attractive city, Germany has retained the top spot as the most attractive country for real estate investment in EMEA, preferred by 22% of respondents in the CBRE survey.
The UK (20%) was once again the second most popular country and both Germany and the UK have increased in popularity from the previous year, up from 17% and 15% respectively in 2016. Investors value their relatively high liquidity and transparency.
The Nordics, with 10% of the vote, entered the top three, rising from seventh in 2016. The increased popularity of the Nordics was also reflected in high levels of investment activity during 2016, with its favourable risk return profile driving volumes 66% above the ten-year average.
Also, the 10 most attractive countries for investment in EMEA were as follows:
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