The most attractive cities in Europe: investor survey
The European real estate market was least affected by the pandemic. The activity on the part of investors here, if not insignificant, has decreased. And once the quarantine restrictions were lifted and communication between the countries became easier, the market activity quickly resumed. However, some trends did change, and so did the leaders of the segment. Experts named the most attractive cities in terms of real estate investments. They were London, Berlin and Vienna.
Wiener Komforwohnungen conducted a European market research. It turned out that institutional investors are confident in the segment, and the pandemic did not affect their intentions to invest in objects. The survey was conducted among 400 business people from different countries, including the UK, Switzerland, Germany and others.
The majority of respondents, 39%, describe London as the most attractive city in Europe in terms of real estate investments. In second place 35% of investors put Berlin, and the third was Vienna, whose market is considered reliable by 23% of the study 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 from Germany and the UK were the most stable in their views.
23% of the survey participants plan to increase the number of residential properties in the portfolio, 8% are more inclined to increase the share of commercial properties. However, investors were almost unanimous in pointing out that when choosing assets, they are primarily focused on their location.
Interest in investments in the real estate market contributes to the growth of construction and supply rates. Many investors believe that European cities are ideal for the purchase of residential and commercial objects. However, it should be understood that the potential for segment development and demand expansion in many European cities is almost exhausted. That is why investing in suburbs is becoming more and more popular. Besides, the infrastructure there is being actively developed, increasing the comfort for living.
In turn, the Swiss bank UBS analyzed the market of different cities around the world at the time of risk of bubble formation. The first place in the rating was occupied by Zurich. There is a high demand for housing, which significantly exceeds supply. Accordingly, sellers regularly raise the price of objects. In the long term, this situation may lead to a crisis in the segment.
The second place was occupied by Amsterdam, where affordable lending terms and high profitability of housing provoked high demand, which was not followed by supply. As a result, the prices started to grow rapidly.