For the first time since 2012, London has dropped its rank to 15th slot among the cities where property investments are highly recommended.
From being one of the top 10 prime options for investments, London has now abandoned its previous position. The European city has been one of the top choices of investors, because of its low interest rates as the values increase.
London is considered to be the largest European real estate market. Gareth Lewis, PwC Real Estate Director, argued that this fall was caused by the investors' desire to look for the secondary cities. He believes that as the London market expands, the prices go up so investors avoid investing further in the said place.
The top two cities where investment is deemed to be highly prospective are Berlin and Hamburg. Berlin has been widely known as a creative and tech industries hub which may have led to its high rank.
On the other hand, Birmingham ranked sixth among these European cities for two consecutive years. Companies and investments grow in this city, because it has relatively cheap rates compared to London.
Despite the political conflicts in Istanbul and Budapest, these two cities still ranked higher than London. Istanbul is seen to be growing more populardue to its quick population growth. This population growth is believed to lead to greater investment opportunities.
The report was created by the PwC and the Urban Land Institute, and had a total of 28 European cities were ranked. 500 investors, developers, and property managers were interviewed for the study. These respondents rated the investment prospects and what the possible investment markets of these cities.
The report is considered to be a relevant guide to investors, and might therefore be followed even by the developers and property managers. Moreover, one of the research interviewees think that the problem will get bigger if the stocks in London will be mopped up.
