London is no longer in the top 10 best European cities for real estate investments. It is the first time that the city has slipped out of the list since 2012. Because of high prices that is taking a toll on yields, London is down to the 15th spot.
According to Telegraph, while London sits at number 15 on the Emerging Trends in Real Estate report by PwC and the Urban Land Institute, Berlin and Hamburg have lead the list at the top two positions. The said report serves as a handy cheat sheet for experts to see gauge where the market could be leaning on to. The report has gathered information from 500 developers, investors and property managers all around Europe. It is surprise that despite the current unstable political situation in Budapest, it lands on a spot 2 notches higher than London which is still the biggest property market in Europe.
These interviewees were asked to provide a rating on each city based on prospects with respect to property investments. The report has also solicited their impressions on the future of both residential and commercial markets.
According to Gareth Lewis, the director of Real Estate at PwC, London is by far the "largest real estate market in Europe." He said, "Money tends to plough into it during the harder times, as people are looking for a safe bet, somewhere to keep their money, and as prices go up and yields compress, people looking for better rewards will look to secondary cities."
He believes that London's current spot on the list reflects where the market is now on the cycle. On the other what may have put Berlin in the number one spot is its popularity as a "hub for creative and tech industries, " according to Telegraph.
The rest of the top ten cities are:
1. Berlin
2. Hamburg
3. Dublin
4. Madrid
5. Copenhagen
6. Birmingham
7. Lisbon
8. Milan
9. Amsterdam
10. Munich
