The most attractive cities in Europe: the survey of investors
The European real estate market was least affected by the pandemic. Investor activity here, even if decreased, was not significant. And as soon as quarantine restrictions were lifted and communication between countries became easier, activity on the market quickly resumed. However, some trends have changed, and with them the leaders of the segment. Experts have named the most attractive cities in terms of real estate investments. They are London, Berlin and Vienna.
The company Wiener Komforwohnungen conducted a market study in Europe. It was found that institutional investors are confident in the segment, and the pandemic has not affected their intentions to invest in facilities. The survey was conducted among 400 businessmen from different countries, including Britain, Switzerland, Germany and others.
The majority of respondents, 39%, describe London as the most attractive city in Europe in terms of investment in real estate. In second place, 35% of investors put Berlin, and in third place was Vienna, whose market is considered reliable by 23% of research participants.
63% of respondents said that the pandemic has not affected their views on investment, and they do not intend to revise their portfolio in order to diversify assets. Investors in Germany and Great Britain were the most stable in their views.
23% of respondents plan to increase the number of residential properties in their portfolio, and 8% are more inclined to increase the share of commercial properties. However, almost unanimously investors indicated that when choosing assets they are primarily guided by their location.
Interest in investing in the real estate market contributes to an increase in the rate of construction and supply. Many investors believe that European cities are ideal for the purchase of residential and commercial properties. However, it should be understood that the potential development of the segment and the expansion of demand in many European cities is almost exhausted. Therefore, investing in the suburbs is becoming increasingly popular. In addition, the infrastructure is actively developing there, increasing the comfort of living.
In turn, the Swiss bank UBS has analyzed the market in various cities around the world at the time of the risk of “bubble”. In first place in the ranking was Zurich. There is a high demand for housing, which greatly exceeds the supply. Accordingly, sellers are regularly raising the price of objects. In the long term, this situation could lead to a crisis in the segment.
In second place was Amsterdam, where affordable credit terms and high profitability of housing provoked a high demand, for which the supply could not keep up. As a result, prices began to rise rapidly.
