Munich most attractive for real estate investment: LaSalle

Munich holds greater attractions for investors over the medium term than any other European city, according to a new study published by LaSalle Investment Management.

In its annual E-REGI index, LaSalle found that Munich should withstand the current economic turmoil better than any other European location.

LaSalle found that Munich has strong levels of wealth, a highly diversified local business structure, consisting of a mix of strong global players and a growing SME sector from various industries, which protects the local economy from the full impact of the global financial crisis. Munich offers particularly favourable business conditions, which are complemented by extensive R&D activities. In combination, these factors result in comparatively strong economic and employment growth forecasts despite the current slowdown.

Munich has become the first German city to top the annual index ranking and replaces London in the No. 1 position. Demand for real estate in London has fallen sharply over the last year, though its office market has seen the sharpest price reduction in Europe. While London's size and wealth have kept it in the top 10, weak GDP and employment growth expectations have weighed heavily against the UK capital in the latest Index.