In which cities are real estate investments most worthwhile? The real estate company PATRIZIA took a look at the external factors and the investment decisions of institutional investors and identified the ten most attractive European cities for investors.
When choosing the right location, not only an attractiveness ranking counts
“A city can be well rated in terms of its attractiveness, but an attractive city that you cannot invest in makes no sense,” explains Marcus Cielenback in a PATRIZIA press release on the Living Cities Index 2022 published by the company at the end of 2022 The real estate expert is Chief Urban Economist at PATRIZIA. Because liquidity also plays a role in real estate investments, the approach followed with the Living Cities Index is to take a liquidity indicator into account in addition to the attractiveness ranking. This reflects the attractiveness of the institutional housing market over the past four years, and the combination of both factors enables long-term segmentation.
A total of 142 cities across Europe were assessed for the Living Cities Index 2022, with the attractiveness ranking taking into account a total of 48 indicators, including factors such as innovation and connectivity. The data comes from verified sources such as Eurostat Urban Audit, the United Nations and Oxford Economics.
Paris is the most attractive city for real estate investments
The result: Paris is currently the most attractive city for real estate investments with a particularly good rating for the innovation factor, closely followed by London (particularly strong in the fundamental market data), Berlin, Zurich (particularly strong in the connectivity indicator) and Munich. In the second half of the top 10 are Vienna, Madrid, Copenhagen, Stockholm and Helsinki. Overall, a conspicuous number of cities in Switzerland stood out in the categories of connectivity and location quality. “Even though Paris is at the top, all the top 10 cities are strong overall. They have the best fundamental market data and high attractiveness combined with excellent liquidity. In addition, these top 10 cities are all characterized by excellent locations and connections and are generally very innovative, which makes them attractive for investors,” concludes Cielenback, summarizing the rating of the most attractive European cities for real estate investments.
Image sources: StevanZZ / Shutterstock.com