Europe’s real estate industry remains “cautious but positive” as it comes to terms with today’s low-return market and the longer-term disruptive forces of technology and social change.
Emerging Trends Europe reveals an industry that is buoyed by a brighter general economic outlook and, in turn, stronger occupier demand for much of Europe than previous years.
Continental European markets are benefiting from a relative slide in sentiment towards the UK, where, despite some semblance of normality returning to investment volumes in 2017, there is nonetheless widespread concern over the economic impact of Brexit in 2018 and beyond.
In contrast, following the election of Emmanuel Macron, interviewees are more upbeat about France than they have been for years. Germany, meanwhile, is consolidating its position as Europe’s safe haven for capital.
According to Emerging Trends Europe, Germany accounts for four of the top six leading cities for overall investment and development prospects in 2018, with Berlin once again at Number 1. Though values in the German capital have rocketed over the past year, industry leaders believe the growth is sustainable, supported by a rising population and a vibrant technology sector.
The dominance of the German cities is broken by Copenhagen, which claims second place – jointly with Frankfurt – following an impressive ascent of the rankings over the years. Domestic and international players alike are drawn to the Danish capital for its strong employment growth and lively tourist trade.