Emerging trends in real estate - Europe 2019 (PwC and the Urban Land Institute, November 2018)

  • Emerging Trends in Real Estate - Creating an impact (Europe 2019)

  • Published by Pricewaterhouse Coopers LLP (PwC) and the Urban Land Institute in November 2018

  • Summary:

    • The 16th edition of this report by PwC and the Urban Land institute based on personal interviews and surveys of 885 real estate industry leaders is aimed at investors and developers. It is aiming at giving them heads-up about where to invest, what to develop, which markets and sectors offer the best prospects and trends in capital flows that will affect real estate investment.

    • The report identified European and international political instability as some of the key concerns for the industry, and in that context, "Brexit is uppermost in the minds of many as the due date of March 29, 2019 approaches without any clear idea of the outcome." The report also highlighted the fact that global investors were less bothered by Brexit than their European counterparts.

    • Lisbon claimed number 1 for investment and development in 2019, but German cities dominated top 10. "At Number 2, Berlin has many devoted fans: “Everybody wants to be there, and rents are going through the roof,” says a pan-European investor. Frankfurt and Hamburg follow Berlin in popularity, at Numbers 5 and 7 respectively. Brexit is expected to benefit Frankfurt, although the scale of the shift away from London is questioned."

    • The report stressed out that "European real estate remained highly liquid overall." Also, more than two-thirds of survey respondents believed investment from Asia would increase in 2019 – boosted by an expected influx of new capital from Japan.

    • As the main business concern, the respondents identified "availability of suitable assets/land for acquisition and development," followed by construction costs and cybersecurity

  • Keywords: EU, Europe, investment, investors, corporate landlords, real estate, financialisation, financialization, Pricewaterhouse Coopers, PwC, investment fund, Paris, London, Munich, Frankfurt, Hamburg, rent control, real estate