At MIPIM's international real estate trade showin Cannes (March 13, 2013), CBRE presented the results of the latest Real Estate Investor Intentions survey. London turned out to be the most frequently chosen location for investments; lower on the list there are Munich, Berlin and Paris. Warsaw holds the fifth position.
Mike Atwell, Head of Capital Markets for Central and Eastern Europe at CBRE Poland, said: - London is the most attractive city for investors, while Munich, Berlin and Paris are moving higher up in the rankings, with Warsaw right behind them, as the preferred location for real estate investments in Central and Eastern Europe. In 2013, investors' intentions are influenced by their perception of market risk, as well as the economical situation in particular European countries. This is why Northern Europe, particularly Germany, Great Britain (mainly London) and Poland maintain their leading positions as promising locations attracting capital.
Poland is considered to be the most attractive location in East-Central Europe. The country received more votes than France, Spain or Scandinavian countries. CBRE analysts ascribe this situation to Poland's good economic conditions and promising perspectives.
The growth of the European real estate market is threatened first and foremost by the recession. According to investors, factors such as the possible dissolution of the eurozone and the availability of financing become of lesser and lesser importance.
Dr. Peter Damesick, the Chief Economist for CBRE in EMEA, states: - Although the recession is still a problem, the fears of a eurozone's break-up are now fading, whereas the impact of the crisis on the investments in the eurozone seems to be decreasing. Despite the fact that the macroeconomic situation remains difficult, the investors on the European real estate market appear more optimistic than last year. It is hard to say whether this optimism won't be destroyed by new fears brought about by the election results in Italy. However, it seems that the results of the survey are paired with the market trends of the recent months. Market liquidity is increasing; there are also more investments in real estate outside the group of the the best assets and on some peripheral European markets. Such trends will still be visible and may even increase this year.
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