In the European metropolises, real estate investments remain in demand despite the Corona crisis. The results of a recent study show which cities are particularly popular with investors.
The study participants
It seems that the ongoing corona crisis cannot at least affect the willingness of European investors to buy, because the results of a study carried out by the German opinion research institute Kantar in September 2020 shows that Europe’s metropolises are still in great demand. A total of 400 institutional investors from Austria, Germany, Switzerland and Great Britain were asked to what extent the European real estate market still appears attractive to them in times of crisis and which cities are particularly in their focus. In the survey, the participants were able to choose from a total of nine major European cities and were given up to three entries. You could choose from London, Berlin, Amsterdam, Copenhagen, Paris, Warsaw, Prague, Budapest, Rome or the option not to provide any information.
The result of the study
The results of the study are clearly in favor of the European real estate market, because 88 percent of the participants across borders are convinced that real estate investments in European metropolises will not lose their attractiveness in the next five years. The popularity of the three following major European cities in particular underpins this result, because 23 percent, and thus every fourth investor, consider the Vienna real estate market to be the most attractive in Europe. Two other metropolises are in the focus even more, because the German capital Berlin has 35 percent of the study participants behind it, while the world metropolis London can even look forward to the favor of 39 percent of investors.
Solidarity with home among investors
In the answers given by the study participants, not only optimism, but also a clear bond with investors can be seen in some cases. 80 percent of the Austrian investors surveyed said that Vienna was their favorite among cities. In second place for Austrian investors is the German neighbor Berlin with 53 percent and Amsterdam in third place with 26 percent of the votes. German investors also present themselves with a home connection and place Berlin at the top of their top locations with 53 percent. But they, too, are interested in what is happening in neighboring Austria, because second place goes to Vienna with 29 percent.
Higher proportion of residential properties
However, the study not only dealt with the investment behavior of investors, but also asked their assessment of the corona crisis and the associated effects. But here too, the study participants are mostly optimistic and unimpressed by the economic consequences of the corona pandemic. On the contrary: Almost two thirds of investors stated that they did not want to change their investment behavior in real estate for the time being. Instead, around a quarter of the study participants from the four countries intend to even increase the proportion of residential properties in the portfolio.
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