Pricewaterhousecoopers has just released its Emerging Trends in European Real Estate report for 2012 with some very interesting data. Istanbul is ranked number one for investment for the third year running, and was also ranked number one across the three categories: the performance of existing properties, acquisition opportunities and development opportunities. This is one up on last year when Istanbul won just two of the categories, coming second to Munich in the performance of existing investment properties.
This year it was Munich's turn to come second in existing property performance category, its ranking of 3rd for acquisition opportunities and 5th for development opportunities was enough to see it ranked second overall. Third was Poland's Warsaw with 3rd for existing property performance, 6th for acquisitions and 4th for development prospects. Berlin in 4th made up Germany's 2 in the top 5 and 3 in the top 10 (Frankfurt in 7th), Berlin was ranked 4th, 7th and 6th for the 3 categories respectively. Stockholm completed the top 5 with 5th for existing property performance, 4th for acquisition opportunities and 6th for development opportunities.
While the report contain a lot of useful information on investor sentiment across European cities, its table "Best Sectors for Acquisitions in 2012, by City" was particularly enlightening.
The table had cities down the side and sectors along the top and highlighted hot prospects in green and yellow, with green being the best sector in that city with 30 or more respondent recommendations, yellow was the second best in the city with 15-29 respondent recommendations. So you could clearly see the bars of color indicating a balanced market with opportunities across all sectors.
Five cities stand out because they have three sectors highlighted in green, one is London and the other 4 are the German cities Berlin, Hamburg, Frankfurt and Munich. All had the same 3 sectors in green Office, Retail and Apartment, and in all either the Office or Apartment sectors were voted best for acquisitions. The German cities show one other trend immediately, only 2 have a yellow sector highlighted; Hamburg has a yellow for Industrial, and Munich has a yellow bar for the Hotel sector.
In Berlin the apartment sector won the day with 58 respondents recommending it, followed by the office and retail sectors with 43 and 42 respectively. In Frankfurt offices are best-buys with 47 respondents in recommendation, while 32 recommended buying apartments in Frankfurt and 30 recommended buying retail properties. In Hamburg the office and apartment sectors tied with 43 recommendations each, while 35 recommended buying retail properties and 18 recommended industrial properties. Offices stole the day in Munich with 62 recommendations, 49 recommended buying retail property in Munich and 44 recommended apartments, just 16 respondents recommended hotel acquisitions.
London had the biggest number of recommendations, with 74 respondents recommending investment in London offices, 51 respondents tipped for apartments, and 36 for retail properties. Twenty four respondents recommended buying hotels in London.
- Monday 06 February 2012