Moscow and Istanbul ranked first and second as this year's top real estate markets in Europe for both investment and development prospects, according to Emerging Trends in Real Estate® Europe 2008, a real estate forecast released at the MIPIM real estate fair in Cannes by the Urban Land Institute (ULI) and PricewaterhouseCoopers today.
Moscow and Istanbul ranked first and second as this year's top real estate markets in Europe for both investment and development prospects, according to Emerging Trends in Real Estate® Europe 2008, a real estate forecast released at the MIPIM real estate fair in Cannes by the Urban Land Institute (ULI) and PricewaterhouseCoopers today.
An improvement in Germany's economy is reflected in the inclusion of four German cities - Hamburg, Munich, Berlin and Frankfurt - on the list of top ten investment markets. Paris, which held the top investment rating in past years, slipped slightly, taking fifth place for investment prospects and sixth for development prospects.
London, a long-time favourite European market, reported one of the sharpest drops, to 15th place for investment prospects and 13th place for development prospects. 'Tighter credit conditions, higher energy prices, a reduction in euro-based exports and a cooler housing market will have an impact in the months ahead,' said William Kistler, president ULI EMEA/India. ‘But, we firmly believe that most markets will weather the downturn with a soft landing.’
The change in the top markets suggests a desire by industry professionals to branch out of 'Old Europe' cities and ‘investigate new markets and diversify current holdings and developments. The report points to an ‘expansion in the definition' of Europe to include parts of the Middle East and Africa, with Abu Dhabi and Dubai being mentioned by many interviewees as potential markets for business.
Emerging Trends, which covers 27 European countries, is based on interviews with nearly 500 of the industry's leading authorities.
