According to a recent study by auditing and consulting firm PwC and the ULI institute (Urban Land Institute) in which property investors were optimistic, Munich and Berlin are the most attractive real estate markets in Europe. This is the first time two German cities have led the ranking of the 27 European cities.
Munich and Berlin surpassed Istanbul, the winning city twice in recent years, and London has risen to the third best position from tenth position in 2012.
In the study on trends in the property market in Europe in 2013, despite the macroeconomic uncertainty, the 500 experts consulted from the sector showed optimism for the first time since 2008.
80% of the experts pointed out that the eurozone crisis has created new opportunities for their businesses. However, the report noted that “this optimism does not mean that all the problems – especially the refinancing of investments from the boom years – will be solved soon”.
The southern European cities, Dublin and Amsterdam remain at the bottom of the ranking: Barcelona occupies 23rd position and Madrid 24th. The real estate sector in Europe is more confident about its improvement, but recovery is still far off.
Moreover, the study notes that investors are looking forward with interest and anticipation to the launch, expected this year, of the Sareb – the ‘bad bank’. Sareb is expected to start selling assets in late 2013, said the report, and banks that are not within Sareb will also provide business to the market.
El Mundo reported that according to PwC, it is estimated that there are 650,000 unsold homes in the Spanish property market, and new home prices have fallen 21% since 2006.
The study also noted that “provided Spain does not fail, Madrid will become an interesting market, with very attractive prices in interests and revenues.”