Avner Motaev looks into a new report on Europe’s cities.
The capital of the United Kingdom has dropped off of a list of European cities that were considered ideal for property investment in 2015, according to a report co-authored by PriceWaterhouseCoopers (PwC) and the Urban Land Institute (ULI).
I’ve decided to look into the details of the report and conclude upon the findings made.
Strong Germany, changing UK
Despite the refugee crisis last year, Germany remains an attractive prospect for investors with Berlin at the top of the list among European property brokers for investment.
The German capital has a diverse market of tenants, from students to businesses – this has been a positive factor for investment. Also, the city is still relatively underdeveloped in regards to real estate when compared to London, for example.
The research shows that the brokers surveyed cited a lack of assets as a significant issue – this may be an explanation as to why London has fallen, given that the city is currently in the midst of a crisis in regards to housing – this in turn affects commercial properties.
Observing Birmingham, the UK’s second city which has ranked highly among investors in 2015, it’s clear to see where London is falling short.
For example, one investor points out that:
“I think it is finally proven that Birmingham is attracting employees and employers from London.
At several buildings in Birmingham which we own, the tenants have moved people there because it is cheaper”
Simply put, prices have driven major employers, such as HSBC, to Birmingham – this trend may continue into 2016 as the capital’s prices stay high.
The report outlines that ‘healthy buildings’ (which I’ve written about before) will play an increasing role in acquisition as human capital moves to the forefront of decisions thanks to an agenda of sustainability among businesses.
In conclusion, PwC and ULI have outlined a clear set of summaries for 2015 – they may go on to play a strong role in 2016.
Avner Motaev is the director of Mobile2Business, a provider of telecommunications solutions to businesses in Austria. Mobile2Business is an official business partner of T-Mobile.