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European cities attract the most real estate investment relative to their size, says JLL

Oslo tops the global ranking, followed by London and Munich


  • Investment Intensity Index identifies 12 European cities in the top 30 globally for investment relative to a market's economic size
  • Oslo tops the global ranking, followed by London and Munich

Europe's presence can be strongly felt in a ranking of markets which attract the most real estate investment compared to their relative economic size, with 12 of the top 30 located in the region, according to JLL's Investment Intensity Index.

Oslo (1) tops the Index as a small but highly sought-after market thanks to active domestic investors. London, in second position globally, remains a favoured investment destination. Munich (3) and Edinburgh (4) round off the global top four.

European cities are seen as a safe-haven for investment dollars and continue to attract investor demand as they demonstrate high levels of transparency and sustainability together with robust technology, infrastructure and liveability credentials.

"Significant capital continues to target real estate, and Europe's New World Cities – mid-sized markets which specialise in high-tech and high-value activities, such as Berlin and Stockholm – sit high on the wish lists of global investors," says Jeremy Kelly, director in global research, JLL. "The attractiveness of these smaller markets in transparent economies is evident, with the contribution of New World Cities to global investment volumes rising from 12% in 2006 to 23% in 2016, overtaking the share of global investment into the 'Big 6' markets of New York, London, Paris, Tokyo, Hong Kong and Singapore."

Elsewhere in the top 30, the Nordic cities feature strongly. After Oslo (1), neighbouring Scandinavian capitals Copenhagen (10) and Stockholm (13) also appear.

Other favoured New World Cities in Europe include Frankfurt (6), Dublin (7), Geneva (17), Amsterdam (19) and Berlin (24).

Of the global top 30, Europe and North America dominate.  There are four cities from the Asia Pacific region, although the balance is starting to shift, as investors target its dynamic cities.

Cross-border investment

European cities also dominate a ranking of the markets which attract the most cross-border investment compared to their economic size, comprising 10 of the top 12 in the Index. London (1) retains its position as the world's most active cross-border market, followed by Edinburgh (2), Frankfurt (3), Munich (4), Dublin (5), Amsterdam (6), Paris (8), Prague (9), Warsaw (11) and Berlin (12).

"New World Cities now account for over one-fifth of global cross-border activity, up from 14% 10 years ago and equal to that registered in the 'Big 6'." added Kelly. "European New World Cities are attractive to a broad range of global investors due to their appealing combination of transparency, stability and sustainability."




About the Investment Intensity Index

JLL's Investment Intensity Index compares the volume of direct commercial real estate investment in a city over a three-year period relative to the city's economic size. The Index provides a measure of real estate liquidity, as well as a useful barometer of a city's overall economic health, highlighting the cities which are punching above their weight in terms of attracting real estate investment.

Covering 150 cities around the world, this latest edition identifies the 30 cities which top the ranking for real estate investment relative to their economic size. We also reveal the top cities for cross-border investment intensity, identify the leading 'Emerging World Cities' and provide a breakdown of which cities are attracting the most intensive investment activity in the office, retail, hotel and logistics sectors.

 

To view the full Index, please click here