European Union: Cities with Highest Growth in Real Estate

Cities With The Highest Growth In The EU Real Estate 

Commercial real estate investment is growing in some European cities. Dublin is one of the 130 EU cities where the commercial real estate market is booming, as per the Savills Investment Management reports. The city is ranked 6th in the 'Dynamic Cities list' as it can attract new skilled people and retain talent, increasing productivity.

In addition, these cities offer the desired quality of life, irrespective of ethnicity. London is on the top of the list, but there are concerns related to the poor handling of the property market, which has led to the housing shortage. 

The cities such as Berlin, Paris and Budapest also provide attractive living conditions. Some of the highest increase in price was reported by Berlin and Budapest (in the list of 20 top EU cities), where the prices grew by more than 10 per cent as compared to the previous year.

The rise in rates is mostly due to low-interest rates, the higher interest of foreign investors, growing employment opportunities and growing consumer confidence (as per Knight Frank).

One of the strongest markets in the EU is Madrid, where the prices increased by 10 per cent, and many commercial property transactions involving European buyers and buyers from Latin America bought properties in the city. In Dublin, the prices increased 12 per cent. 

France is still one of the only countries offering luxury retail properties, the 'high streets,' and some of the leading global brands in these streets pay the highest rentals to market their products.

However, the reasons for the high rent paid by these high-end stores may be uncalled-for, as luxury brands are going online more and more. It is assumed at least 25 per cent of the luxury products will be sold online by 2025, but tourism promotes these local fashion houses where one can get some of the rarest sets of brands and collections. 

Many Chinese investors are buying such properties in Paris, and the rentals in these streets grew at the rate of 9 per cent in the year from 2013 to 2017. New York-based real estate companies are also purchasing such properties in France.

To a certain extent, the factor of tourism and properties are responsible for rapid growth in cities offering attractive deals to tourists. Some EU cities such as Paris were affected by overcrowding during these holiday seasons due to such population movement to these cities, where the local population was lesser than the incoming tourists' population.

Paris, Berlin, Kyoto, Reykjavik and Dubrovnik are some cities widely affected by overcrowding and a disruptive proportion of the population. Recently, in Thailand, the local authorities had to act to prevent environmental damage to a famous beach by overcrowding.  

Investment in some of the cities in the EU is growing, while in cities like Italy, it is declining significantly. The European Central Bank plans to end its stimulus plans and raise interest in 2019, and it will negatively impact property transactions in the EU. 

Many European cities have inconsistent growth, so to know more about opportunities in such markets, click Hamilton International Estates (www.hamiltoninternationalestates.com)