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: