London slips in European property investment ranking

London is no longer one of Europe’s 10 best cities for property investment prospects, according to new research.

In the latest Emerging Trends in Real Estate report from professional services giant PwC and research organisation Urban Land Institute, London came in 15th place, the first time it has failed to hold a top-10 position since 2012.

The study asked over 500 property investors, developers and managers throughout Europe to rate each city based on its investment prospects and the future of its commercial and residential property markets.

PwC’s real estate director, Gareth Lewis, said: “London is the largest real estate market in Europe.

“Money tends to plough into it during the harder times, as people are looking for a safe bet, somewhere to keep their money, and as prices go up and yields compress, people [are] looking for better rewards will look to secondary cities.”

He continued: “And that’s when you see cities like London slide out of the top 10. It’s not a long-term damning of the London market by any stretch of the imagination. It’s just a reflection of where we are in the cycle.”

According to the Telegraph, the Emerging Trends in Real Estate further highlighted the increasing importance of environmental and sustainability considerations in the property sector.

Discussing this theme, the Urban Land Institute’s vice president of strategic communications, Peter Walker, commented: “It’s clear from the interviews that this is now just part of mainstream language of business in real estate, and it’s not seen as this emerging fad anymore – it’s seen as a core business theme for many.”

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