Based on the findings of ULI/PwC Emerging Trends in Real Estate Europe 2015 report, the 5 leading cities for investment prospects in 2015 are a mix of German stalwarts and recovery plays: Berlin is top, followed by Dublin, Madrid, Hamburg and, in a remarkable revival, Athens. Dublin’s ranking and Athens’ rise reflect the opportunistic appetite that runs through Europe. Madrid’s ranking is high, too. It reflects a capital surge into Spain that started in 2013 and shows no sign of easing up. If anything, there are signs of this activity spreading across southern Europe.
Focusing on Athens, the Greek capital constitutes one of the cities with the most improved prospects since it has moved 23 places up to the relative list compared to 2014. The investors’ sentiment for Greece’s real estate market has moved back to positive grounds, since sings of economic recovery have appeared even though the country’s economy remains fragile. Recent activity witnessed in Greece’s real estate market pinpoint to the same direction.
Business deals such as the acquisition of a 2/3 stake in NBG Pangaea REIC by Invel Real Estate Partners and the disposal of a significant amount of asset holdings held by the Hellenic Republic Asset Development Fund, have made international money to eye again towards the Greek real estate market.
In Europe, this year's report predicts a busier, more profitable year for real estate than 2014, despite concerns over weak fundamentals and economic conditions. Key predictions for 2015 include:
- Property as a fertile ground for investment: Despite economic uncertainties in Europe, 70% of investors expect more equity and debt to flow into their markets this year in a quest for the best real estate.
- Asset shortages: 82% of investors believe that a lack of suitable assets will have a moderate or significant impact on their business this year.
- A move toward secondary markets: Real estate investors—armed with capital from sovereign wealth funds and pension funds from Asia and North America—are moving into less competitive environments; looking at secondary cities, secondary assets, and development opportunities.
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Emerging Trends in Real Estate® Europe is a joint annual study report by Urban Land Institute (ULI) and Pricewaterhouse Cooper (PwC) that represents the views of over 550 Internationally renowned real estate professionals, including investors, developers, lenders, agents and consultants. The report provides an outlook on European real estate investment and development trends, real estate finance and capital markets, as well as trends by property sector and geographical area. It is published since 2003.