Paris, second best European city for investments
Similar to 2014, Paris remains at second place in the LaSalle Investment Management ranking for the best place for investments.
London, followed by the French capital and Istanbul, stays at first place in the ranking by LaSalle Investment Management. Bordeaux and Toulouse saw a progression.
For this 16th edition of the list of 100 European cities which are good for investing in, published by LaSalle Investment Management (LIM), the podium remains the same as last year : London takes the lead once again over Paris and Istanbul. For France, Lyon continues at 24th place, but Toulouse (29th) and Bordeaux (55th) have made significant progress up the ranking.
The objective of this tool is to assist property investors in their investment strategy in Europe and to guide them in their choice. For this purpose, the study undertaken by LIM takes into account the factors of economic growth, job market, demographic growth and market size.
The ranking for 2015 confirms the dynamism of the European economy which depends mainly on its major metropolises, such as London and Paris. At its height three or four years ago, the gap between the two capitals seems to plateau in 2015. One can imagine that in the next two years, Paris gains more of the markets, according to Mahdi Mokrane, director of research and strategy at LIM. Istanbul, less predictable at third place in the ranking, produces an excellent breakthrough due to strong economic growth. Stockholm, Luxembourg and Oslo are next as well as major German cities such as Munich and Stuttgart, which are in 7th and 9th positions.
The Consistent, the affluent, the movers and the aspiring
This year, LaSalle Investment Management established for the first time, 4 categories for the countries : the "consistent", the "affluent", the "movers" and the "aspiring". The aim : to help investors to develop strategies adapted to each market. For the "consistent", they include mainly the Northwest European countries such as Amsterdam, Frankfurt, Paris and London. These cities, combine deep investment markets with long term timeframes, supported by a strong demography, an advanced technological economy and growing urban sectors.
The "affluent" refers to markets which are harder to penetrate due to their small size and competition from local investors. These include Oslo, Copenhagen, Zurich and Stockholm. The investment strategies centred upon sectors based on consumption continue to be attractive in these cities where their high score is due to the affluence of their population. In the third category, that of the movers, timing is key for investing in these cyclical markets. "In this category, one can differentiate two sub-categories : cities which have changed structurally regularly over the past several years, such as Berlin, Toulouse and Manchester and those which are more exposed to macro-economic movements such as Dublin, Madrid, Barcelona or Bilbao", Mahdi Mokrane explains in the LaSalle Investment Management study. Finally, the aspiring cities include Prague and Warsaw, which benefit from their entry into the European Union. "The outputs there are today close to the same levels as those in Western European cities", the study notes.
"With 800 million inhabitants, Europe is a dense region where the investors have to analyse more by city than by country. This analysis appears to us to be more efficient in developing the investment strategy", Mahdi Mokrane concludes.