Select European cities ranked by overall prospects in real estate 2020

Multiple factors can play a role in the decision to invest in real estate. To calculate how prosperous European cities are on the estate market, the Urban Land Institute considered transport connectivity, forecasted real estate returns, a 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, and affordability of space for new/small/growing businesses.

Leading European cities for development and investment

According to the ranking, the leading five European cities by overall prospects for 2020 are Paris, Berlin, Frankfurt, London and Madrid. As most important factors for selecting a European city for investment or development, industry experts outlined transport connectivity, availability of assets or new development opportunities, forecasted returns, market size and liquidity, economic performance and regulatory environment. When it comes to the issues influencing real estate professionals in their investment choices, the major concerns shared were construction costs, availability of suitable assets/land for acquisition and development, and economic growth.

Leading investment real estate sectors

In terms of investment prospects, the sectors with the highest scores were co-living, data centres and logistic facilities. This should come as no surprise taking into consideration that the value of investment in industrial and logistic real estate in Europe has increased by more than threefold since 2012.