Stefan Kühn
PwC audit company together with the Urban Land Institute has released the next report "Emerging Trends in Real Estate 2018". According to the paper, Berlin has become the most promising European real estate market in terms of development and investment attractiveness for the fourth consecutive year.
The rating of the largest cities in Europe was compiled on the basis of estimates made by the interviewed specialists. Each participant in the survey was asked to assess prospects for the development and investment attractiveness of the markets for 2018, using a scale of one to five points. "Fantastic" and "the hottest market in Europe" - such epithets were characterized the capital of Germany. "We love cities such as Frankfurt and Munich, but they are expensive. However, Berlin is more profitable from the point of view of the initial cost of investments and the growth of prices for investments. The real cost here is much lower than in other cities around the world. There is a skilled workforce, creative workers and a high level of culture, as well as the public sector of the economy and the advantages that this gives", one of the investors said.
In addition to the German capital, three more German cities - Frankfurt (2), Munich (4) and Hamburg (6) - got in the top 6 ranking.
Copenhagen shares the second line with Frankfurt. Both cities have the same indicators both in terms of development of the real estate market, and investment attractiveness. At the same time, as the authors of the report note, German cities greatly benefit from the decision of the citizens of Britain to withdraw from the EU. Immediately after the referendum in May 2016, evaluation of the prospects for the London real estate market took on a negative connotation, and London itself fell to the 27th place out of 31. About 80% of the interviewed experts are confident that the value of real estate in the capital of Great Britain and the amount of investment in it will keep falling in 2018. At the same time, 20% of respondents expect a strong reduction in investment. "Everyone sees the problem of Brexit in the fact that it is absolutely unclear what the very exit of the country from the EU will be. And business does not like uncertainty, the end of which is not yet visible", the head of the London office of one international investment fund commented on the situation.
source: pwc.de
The rating of the largest cities in Europe was compiled on the basis of estimates made by the interviewed specialists. Each participant in the survey was asked to assess prospects for the development and investment attractiveness of the markets for 2018, using a scale of one to five points. "Fantastic" and "the hottest market in Europe" - such epithets were characterized the capital of Germany. "We love cities such as Frankfurt and Munich, but they are expensive. However, Berlin is more profitable from the point of view of the initial cost of investments and the growth of prices for investments. The real cost here is much lower than in other cities around the world. There is a skilled workforce, creative workers and a high level of culture, as well as the public sector of the economy and the advantages that this gives", one of the investors said.
In addition to the German capital, three more German cities - Frankfurt (2), Munich (4) and Hamburg (6) - got in the top 6 ranking.
Copenhagen shares the second line with Frankfurt. Both cities have the same indicators both in terms of development of the real estate market, and investment attractiveness. At the same time, as the authors of the report note, German cities greatly benefit from the decision of the citizens of Britain to withdraw from the EU. Immediately after the referendum in May 2016, evaluation of the prospects for the London real estate market took on a negative connotation, and London itself fell to the 27th place out of 31. About 80% of the interviewed experts are confident that the value of real estate in the capital of Great Britain and the amount of investment in it will keep falling in 2018. At the same time, 20% of respondents expect a strong reduction in investment. "Everyone sees the problem of Brexit in the fact that it is absolutely unclear what the very exit of the country from the EU will be. And business does not like uncertainty, the end of which is not yet visible", the head of the London office of one international investment fund commented on the situation.
source: pwc.de