INVESTOR’S GUIDE 2014
OUTLOOK 15
European City Investment Prospects Source: Emerging Trends in Real Estate Europe 2014 Note: Investment prospects for existing investments
The competition for prime assets in
The report highlights that investors are
other recovering markets, such as
Europe’s major real estate markets is
becoming increasingly comfortable with
Spain. The report highlights that 67%
leading investors to turn to recovering
taking more risk in search of returns.
of respondents believe that there
markets such as Ireland and Spain,
One of the biggest beneficiaries of this
are now good buying opportunities
regional cities and secondary property
is Dublin, which has raised dramatically
in Spain, with the acquisition of the
in search of returns, according to
in the city investment rankings, moving
Parque Principado shopping center
Emerging Trends in Real Estate Europe
up from 20th in last year’s report to
in Oviedo by Intu and the Canadian
2014, an annual report published jointly
second in 2014. Dublin’s real estate
Pension Plan Investment Board for EUR
by the Urban Land Institute (ULI) and
market has been transformed from
162 million highlighted as an indicator
PricewaterhouseCoopers (PwC).
a “no-go” location among investors
of mainstream interest in the market.
only two years ago, to being one of the
However, skeptics argue that debt is
The report finds that 71% of
hottest markets in Europe, with both
very hard to attain and that it is a risky
respondents think that a shortage of
domestic and international investors
market to invest in before there are
suitable assets for acquisition will have
attracted by pricing levels and Ireland’s
signs of any growth.
a moderate or significant impact on
improving economic outlook. The report
their business during 2014. As a result
finds that 51% of respondents now see
The competition for core assets has also
of this increasing competition, 59%
good buying opportunities in Ireland.
led to an increase in investors looking
of respondents believe that prime
beyond prime assets in major European
property in Europe’s core markets has
The weight of international capital
markets such as London, Munich and
now become over-priced.
is leading investors to also turn to
Paris, and instead buying solid income