According to JLL’s latest City Investment Intensity Index, European cities are leading the way when it comes to pulling in more direct real estate investment in comparison to their economic size.
In the global study, six of the top ten cities for investment intensity are European, with Nordic and German business centers performing particularly well.
Of these six European cities, London, the world’s most liquid and transparent real estate market, has maintained its position at the top of the Index for the last three quarters, whilst Munich comes 2nd , Oslo 4th, Frankfurt 7th, Copenhagen 8th and Stockholm 9th.
Vibrant and with strong technology credentials, the European cities leading the Index also share the qualities of being transparent and scalable with a good quality of life, factors which are increasingly being incorporated into investment strategies.
Frank Porschke, Managing Director of JLL Germany comments, “Munich and Frankfurt have strong records of innovation and sustainability, which together with healthy economic growth and job creation provides a significant competitive advantage and is helping them attract inward investment. Frankfurt is Germany’s top cross-border investment market and the 3rd most popular destination for foreign capital in Europe.”
“Despite the Nordic countries’ close cultural and economic ties, their real estate markets vary. Nordic countries attract a large number of international investors and register very high transaction volumes due to their healthy economies and great liquidity. Yield levels have reached an all-time low in the prime CBD areas which have driven investors to secondary markets. The differences in yield levels between prime and secondary products are therefore declining. The Nordics will most certainly continue to be one of the most stable and popular markets to invest in in the future”, says Daniel Gorosch, Managing Director JLL Sweden.