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.

Issues impacting direct investment in European real estate in 2020, by level of effect

Very concernedSomewhat concernedNeither/norNot very concernedNot at all concerned
Construction costs25%42%20%10%3%
Availability of suitable assets/ land*21%41%22%13%3%
European economic growth11%55%19%14%1%
Currency volatility9%29%31%22%9%
Cybersecurity8%42%30%16%4%
Global economic growth7%54%21%16%2%
Interest rate movements6%25%20%41%8%
Inflation4%16%31%38%12%
Availability of finance4%15%17%43%12%
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Sources

Release date

November 2019

Region

Europe

Survey time period

2019

Number of respondents

905 respondents

Age group

18 years and older

Special properties

industry experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.

Method of interview

Face-to-face interview, online survey

Supplementary notes

Percentage points exceeding 100 percent are due to rounding.
905 individuals who completed surveys or were interviewed.

* Availability of suitable assets/land for acquisition and development.

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Statistics on "Real estate investments on the European market"

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