London remains top European city to invest in commercial real estate – survey
Following the UK’s decision to leave the European Union, nearly two in five (38%) institutional real estate investors cited London as the top European city to invest in commercial real estate, ahead of Berlin (36%), Munich (31%) and Paris (22%).
According to a new study by BrickVest, the real estate investment platform, one in five (21%) cited both Dublin and Hamburg and a further 16% selected Frankfurt, highlighting a clear positive trend towards German commercial real estate. Indeed 40% of the top ten European cities were German.
BrickVest’s research showed that three in ten (30%) institutional investors believe Brexit will either increase or significantly increase European commercial real estate investment opportunities. A further one in four (23%) institutional investors believe that Brexit will have no impact on commercial real estate investment opportunities.
The research did however highlight some concern regarding the illiquidity of commercial real estate investing. Three fifths (61%) of respondents do not believe that, in light of £1.4bn being pulled from UK property funds post Brexit, real estate investors have enough access to a secondary property investment market.
BrickVest is aiming to provide access to a secondary market over the coming months that make previously illiquid real estate investments tradable, enabling users to offer properties to other investors.
Emmanuel Lumineau, CEO at BrickVest, commented: “Our research has identified London as the number one European city to invest in commercial real estate as investors seek to capitalise on potential price discounts and market uncertainty. However Germany dominates across the leaderboard and we have seen plenty of appetite from investors looking to capitalise on income producing portfolios across Europe and take advantage of the Brexit vote.”