Real estate trends in Europe: the top six investment markets for 2009 are Munich, Hamburg, Istanbul, Zurich, London and Moscow

A recent report of Urban Land Institute (ULI) and PricewaterhouseCoopers – “Emerging Trends in Real Estate Europe” (now in its sixth edition) provides an outlook on European real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues.

As the report concludes, the top six investment markets for 2009 are Munich, Hamburg, Istanbul, Zurich, London, and Moscow. German markets in general are relatively stronger compared to most other cities in Europe. Istanbul and Moscow are still underserved by high-quality product in many sectors and have better growth potential than all other cities.

London is correcting rapidly and will offer opportunistic plays later in the year. Zurich is a relatively stable market and prospects there have not fallen as much as those in other markets, raising its relative rank. Development prospect ratings place Istanbul in first place, followed by Zurich, Munich, and Moscow. Moscow is rated as the riskiest city, followed closely by Dublin and Madrid.

For individual property types, most of them are viewed as offering “fair” prospects. Retail is the leading major property sector, followed by hotels, mixed use, rental apartments, office, industrial/distribution, and residential for sale, in that order.

The range amongst the top six of these is very narrow and none really stands out. Looking at subsectors, central city office clearly is preferred over suburban office. The concern about quality is reflected in the preference for deep liquid markets and city centre locations.

For more details you may download the full report from:
http://www.pwc.co.uk/eng/publications/emerging_trends_in_real_estate_europe.html

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3 thoughts on “Real estate trends in Europe: the top six investment markets for 2009 are Munich, Hamburg, Istanbul, Zurich, London and Moscow”

  1. Dear Liviu,

    Sorry……You forgot something.

    there is Mallorca!!!

    You will see that the prices are only in some areas 20 % down.
    But we are on an island and land is limited and only a few owners must sell.
    And bevore I invest in London or Hamburg and I have a profit from 8%, I will invest in Mallorca and make much, much more.

    But You are rigth: Real Estates is the “One and Only” investment in the next coming years.

    regards,

    Guido

    1. Hi Guido,

      Thanks for the reply. There are markets more stable than others. However, we should consider that the global real estate marketplace has experienced dramatic changes and new forms and levels of risk arise. Buying and selling advices should be treated with caution. Nowadays local market knowledge should be integrated with some global expertise.

      I don’t believe real estate is the “one and only” investment in the coming years but it’s certainly one of the most dynamic. Other opportunities may also be available for investors, besides real estate, attractive in terms of profits and risks involved.

  2. Woah this blog is wonderful i love reading your posts. You recognize, a lot of persons are hunting round for this info, you can help them greatly.

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