Direct investment in real estate in Europe in 2020, by issues impacting business

Multiple aspects can impact how and where an investment is carried out. In 2019, real estate industry experts identified construction costs, availability of suitable assets, land for acquisition and development, and economic growth as their main concerns for making an investment on the European real estate market in 2020.

Investment and development prospects in Europe

According to the survey, Paris was the European city with the highest real estate investment and development prospects, scoring 2.16 points, followed by Berlin and Frankfurt with 2.13 and 2.07 in 2020. To calculate the scoring, the source took into account the following factors: transport connectivity, forecast real estate returns, city’s economic performance, availability of assets/opportunities for new development, market size and liquidity, regulatory environment, digital connectivity, attractiveness to talent, city leadership, housing affordability, affordability of space for new/small/growing businesses.

Investments and return

In 2018, the United Kingdom, Germany and France were the top three countries in Europe by total value of commercial real estate investment. In terms of profitability, the industrial and office real estate sectors in the United Kingdom are estimated to bring the highest returns between 2019 and 2023.