Lisbon leading real estate investment in Europe

22 Nov 2018

Portugal buildingsAccording to a recent report, Lisbon is set to lead the European real estate market in the coming year, followed by Berlin and Dublin – which ranked in second and third place respectively.

A study from PwC and the Urban Land Institute revealed that Europe is the region which attracts most investment in terms of real estate profitability, with Lisbon successfully ranking in the area as a result of its “relatively cheap real estate” and the “incredible financial return”.

There are other positive attributes which have resulted in Lisbon’s top ranking, however. The city’s quality of life and steadily growing economy are of great importance – as well as Lisbon now attracting a growing number of companies, investors and tourists.

A European fund strategist described Lisbon as being “on everyone’s platter of cities they like”.

The ‘Emerging Trends in Real Estate’ report points out that “the search for safer investment in the next year is going to be key in the European real estate market.” The report went on to say: “Some investors are still looking at real estate in Europe as capital preservation. They are not looking for outsized returns, but security.” Currently, risks are continuously being faced due to an increase in international political stability – which is especially why more importance is being directed towards smaller, dynamic cities named the “rising stars”.

When narrowing down the cities that they wish to invest in, Europe’s industry leaders name transport connectivity as a key factor. “We look at transport infrastructure big time. We are paying more attention to roads, rail and airports, and mixed use,” says a pan-European investor.

Following transport, opportunities to invest or develop, expected returns, market size and liquidity, as well as a city’s economic performance, all play major roles as factors contributing to the rankings.