09 November 2017
London
Reporter: Theo Andrew

London leads Europe for occupier demand


London has re-claimed its position as the leading region for real estate in Europe, leap-frogging Paris in LaSalle’s European Regional Growth Index (E-REGI).

The UK Capital, which came in second place last year, has regained top spot as fears disperse over a hard Brexit, with a softer, longer Brexit now looking more likely, LaSalle said. The city also saw a stronger-than-expected economic performance.

Paris ranked a close second, and was helped to the top of the charts by the landslide victory of president Emmanuel Macron. It also leads the way in terms of human capital.

Stockholm was ranked third, also led by strong human capital scores. Nordic cities generally scored well in the index, with Oslo in eighth place, Copenhagen-Malmö in 10th and Helsinki in 16th.

Surprisingly, Istanbul came in fourth, a reflection of the growth in the city, rather than the current political climate, according to LaSalle. Dublin rose two places to fifth.

According to the index, German cities performed strongly but the “scarcity of labour across all sectors of the economy” means occupier demand has plateaued, with Munich dropping from fourth to seventh.

UK cities also put in a strong performance, with London, Bristol, Edinburgh and Manchester outperforming the European average with regards to human capital.

The improvements were partly attributed to improving university rankings, venture capital investments and a higher number of patents filed.

Mahdi Mokrane, European head of research and strategy at LaSalle Investment Management, said: “LaSalle’s E-REGI index has a proven 18-year track record of guiding investors to those cities offering the best occupier prospects.”

“E-REGI’s long history has helped us identify clear clusters of cities that tend to offer common real estate behaviours. Combined with careful analysis of supply and pricing dynamics this in turn enables us to design superior risk-adjusted strategies for our clients.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Standard Chartered boosts CRE team
11 December 2017 | Singapore | Reporter: Stephanie Palmer
Standard Chartered has named Steven Cranwell as global head of commercial real estate for its global banking business
SoftBank and Compass in ‘largest ever’ US real estate tech investment
08 December 2017 | New York | Reporter: Stephanie Palmer
Real estate technology firm Compass has won $450 million in investment from the SoftBank Vision Fund, in what Compass has called the largest ever real estate technology investment deal in US history
Tristan fund makes first foray into Germany
07 December 2017 | Bonn | Reporter: Stephanie Palmer
The CCP 5 long-life fund, a core-plus fund advised by Tristan Capital Partners, has made its first investment in Germany, acquiring an office complex in Bonn for €35 million
JLL develops UK corporate solutions team
07 December 2017 | London | Reporter: Stephanie Palmer
JLL has named Sue Asprey Price as lead director of its corporate solutions business in the UK, with immediate effect
Link Asset Services appointed as real estate fund administrator
06 December 2017 | London | Reporter: Stephanie Palmer
Warehouse REIT, a specialist warehouse investor managed by Tilstone Partners, has selected Link Asset Services for fund administration
Dutch portfolio sold for €200 million
05 December 2017 | Amsterdam | Reporter: Stephanie Palmer
Patrizia Immobilien AG has sold a portfolio of 61 residential properties in the Netherlands, for around €200 million
Allianz tops off bumper 2017 with Broadway acquisition
04 December 2017 | New York | Reporter: Stephanie Palmer
Allianz Real Estate has acquired a 43 percent stake in 1515 Broadway, New York, a class-A building valued at $1.95 billion