London was named the most attractive European city for real estate investors for the second year running. This is according to the CBRE’s 2022 EMEA Investor Intentions Survey. Paris and Amsterdam came next, whilst positive investor sentiment towards German cities remains high, with Berlin and Frankfurt ranked fourth and fifth in the report.
Meanwhile, a report commissioned by the Urban Land Institute and PwC tells us that confidence in the European property market overall has reached its highest level since 2014. Almost 850 industry leaders were surveyed - including developers, fund managers and property investors - and results show that confidence has been rising throughout 2022 and is expected to do so well into next year.
Thanks to London’s ongoing ability to attract new tech and life-sciences markets, it’s proved once again to be a big draw. Despite growth being slightly slower in the capital, property here costs more than in other parts of the country, meaning even a small rise in assets translates into a significant return. Meanwhile, over 80% of businesses that responded to the UBI’s survey said that their biggest concern next year is the price of construction and the availability of certain resources.
It’s worth noting that London also ranks as 3rd in the world for transparency. An abundance of individual research, industry scrutiny and available data have made the market easy to navigate. Similarly, the government provides many schemes to encourage innovation and investment, including help for small businesses. This has led to London becoming one of the most competitive cities globally, with excellent transport links, six international airports and a famous tube network only further enhancing its appeal.
Over the years, the capital has consistently seen investment coming in from Asia, India, The Americas and Europe. This has given it genuine flexibility and an abiding ability not to get boxed in by any one region. It is instead seen as low risk, with investor-friendly regulations that make things easy for prospective buyers. Cosmopolitan, English speaking and a hub for culture and business, it’s easy to see how the city has maintained its allure.
Sources: Propertyweek, The Times, Financial Times.