The best city in Europe for investment in real estate
According to the study «Emerging Trends in Real Estate», conducted by Pricewaterhouse Coopers (PwC), Munich named the best city in Europe for investment in real estate. In the top twenty includes three more cities of Germany - Berlin, Hamburg and Frankfurt-on-main.
1. Munich is a city with the lowest rates of unemployment in Germany. The labour market is growing due to the development of a research base in the areas of biotechnology and environmental Sciences. There are institutes of the max Planck and the name of the Heinz Maier-Leibnitz, as well as the nuclear research reactor. In addition, this city - IT is the capital of Germany.
The economy of the capital of Bavaria is oriented mainly on the services sector. Here, open up the headquarters of major international organizations and local companies. The proportion of vacant office space is negligible in comparison with the Frankfurt and other large cities of Germany.
In Munich there were favorable conditions for investments in trading premises. Purchasing power of its inhabitants is higher than the population of other cities. Besides, here comes a lot of tourists, especially from the BRIC countries.
2. On the second line of a rating - Berlin, nicknamed «Silicon alley». Here come to work owners of IT-companies, designers and artists. It is expected that in the German capital will open the office Twitter. Berlin was chosen 37 thousand companies with total annual turnover of 26 billion Euro.
Growth of economy of Berlin beneficial to the development of the market of inhabited of the real estate, the most popular sector, in the opinion of investors. Earlier this city are attracted by the cheap rent, but now the situation is changing. Steel demand for elite apartments in Berlin. They become mostly pension funds, listed companies, private organizations, as well as wealthy Germans. The housing market is thriving because of the tourists: 5 million out of 11 million visitors, who have visited Berlin in 2011, rented an apartment, and not stayed in hotels.
3. In third place was London. This city is located on the periphery of the financial crisis, the Euro zone and its economy is developing faster than in other regions of the UK. «Gold» of the address, such as Mayfair, are considered to be «safe havens» and attract capital from Greece, Spain and countries of the Middle East. International companies to buy plots for construction and master the markets private rental.
4. The great potential of a market of Istanbul. The city is rapidly changing for the better and is experiencing a boom in the premium retail premises. Auction company Sotheby's opened here a shop, a Nestle and Microsoft prepare the base for the promotion of their products - they are attracted by the proximity of cities of Russia and the Middle East.
5. Fifth place went to Hamburg. A growing population with its need for housing opens up bright prospects for investors. Feature of the market - a combination of high prices and stable dynamics. Demand is not only apartments, but also offices, the rate of return which is now of 4.75%, the lowest level since 2002.
In the top ten best cities for investments also included Paris, Zurich and Stockholm. Experts PwC believe that demand in these markets will be used by offices and commercial premises. In addition, a large capacity are Moscow and Warsaw.
