According to respondents from a 2017 survey, the real estate market in Europe was, in their opinion, the most attractive region worldwide for investments in real estate. Before COVID-19 hit the continent, industry experts were still targeting a return level between five and ten percent for their property investments in 2020. In an investment climate affected by artificially low interest rates and tricky geopolitical events that can affect stock markets drastically, some think investing in European housing, office or warehouses is a good alternative. The main motivation of these property investors is that it provided a safe way for asset class diversification. But how does this type of investing look like?
Where are the most popular property investments in Europe?
In 2020, Paris, Berlin, Frankfurt, London and Madrid were ranked as the European cities with the highest prospects on the real estate market with regards to the existing investments in their real estate market performance and quality. For most investors, a city's transport connectivity was the most important factor when selecting a European city for property investment or development in 2020. The United Kingdom, Germany and France were also the countries were commercial property investments were highest in early 2019.
Which property investments are most common in Europe?
Property investments in Europe traditionally focused on the office real estate market and the housing market. Europe’s most expensive rental cities were Paris, London and Luxembourg City respectively in 2018, with eight European cities having an average monthly rental price of over 2,000 U.S. dollars. London and Paris were also among the cities with the highest rental prices for prime office properties in the continent in 2019. However, social developments disrupted this picture. In 2020, retirement homes were considered to beEurope’s most important property investment prospect.