German cities top the ranking for real estate investment
02 November 2017
Copenhagen and Madrid will join the ranks of Berlin, Frankfurt, and Munich as the top cities for real estate investment and development in 2018, according to Emerging Trends in Real Estate® Europe 2018. The annual forecast is published jointly by the Urban Land Institute (ULI) and PwC, with PwC Research having supported the research for the third year running. The study gathers the opinions of over 800 real estate professionals in Europe, including investors, developers, lenders, agents, and consultants.
For the fourth year in a row, Berlin has taken the top spot in the Emerging Trends city rankings, further establishing its dominance in the European property market. 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 Munich, which—while expensive—has remained an attractive market for investors and developers alike. Madrid, benefiting from positive office rental growth prospects, has jumped four places to take the fifth spot.
Dublin remains a favoured top-10 investment location, coming in at number seven with Manchester and Birmingham - the top UK cities - placed at numbers 20 and 21 respectively, ahead of Edinburgh (26) adn London (27).
According to the report, the property industry is cautiously optimistic about its European business prospects in 2018. Around half of survey respondents predict that profits and headcounts will increase next year and 42% expect an increase in business confidence—a 10% jump from last year’s results.
Brexit also 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.
For more information on the Emerging Trends in Real Estate® survey, please contact PwC Research Senior Manager, Gillian Kane .