Berlin & London Lead Real Estate Investment Destination In 2021
According to PwC and the Urban Land Institute’s (ULI) annual Emerging Trends in Real Estate Europe 2021 report.
The survey which polled almost 1,000 industry leaders across Europe showed that Berlin has moved up one place to retake the number 1 spot of overall real estate prospects, toppling Paris, which drops to third.
Germany’s capital is the city investors want, especially its offices. “The effects on the office property market are not particularly drastic. One of the main reasons for Berlin is the upward potential in rents,” says an investor. Germany’s three other major markets remain firmly cemented in the top 10, Frankfurt, Hamburg, and Munich. “The theory is that Germany is in better shape than most of the other economies. And therefore, in a way, if you’re going to buy anywhere, you buy in Germany,” says a pan-European fund manager.
London takes the silver this year, rising two places to pip Paris. Europe’s two global gateways and most liquid property markets still have many fans.
Many interviewees still view London as a relatively good prospect.
“London has got to be the most transparent and the most liquid market in the world. It’s a market where international capital is very comfortable”
Meanwhile, Paris crops up on every investor’s wish list, for logistics and residential as well as offices. The city’s flagship €26 billion ($31 billion) “Grand Paris” infrastructure project and the 2024 Olympics, which are still expected to take place, are frequently cited as plus points.