The consultant PwC and Land Urban Institute have published the report trends of the real estate market in Europe for 2019. The investors surveyed believe that 2019 will begin to have a certain slowdown in real estate investment. The Brexit is one of the main reasons.
With the beginning of 2019, annual reports began to be published in which some scenarios are foreseen for the real estate market in 2019. The
This report concludes that the leaders of the financial sector (real estate firms, financial entities and other investors) remain optimistic and will continue to invest in the European real estate sector, albeit with some caution due to political instability, with Brexit being the main focus of concern.
Availability of adequate assets to invest
The PwC survey was attended by 885 professionals from the financial sector from 22 European countries. Of these respondents, 68% are concerned about the availability of assets and believe that in the next five years there will be fewer suitable assets to invest in.
Although some investors are moving to alternative or niche areas, such as student accommodation, which require more operational experience. For many investors, the search for income is the main narrative of European real estate investment in 2019.
The impact of Brexit will stop investment
The geopolitical scenario of investment is difficult to ignore. The threat of international political instability is by far the biggest concern among investors. Interviews indicate that Brexit bothers global investors less than Europeans. Even so, an overwhelming 83 percent of respondents expect inequality in economic growth between the United Kingdom and the European Union in 2019.
The threat of trade wars is now also on the agenda of the industry, but its impact is difficult to quantify at this time and will probably materialize after 2019.
More than half of the respondents are concerned about the affordability of housing, social housing and social inequality as the most important problem in 2019.
Lisbon takes the lead as the first European city to invest
The report emerging trends in Europe 2019 classified the real estate markets in the main European cities, in this case the attention is shifting towards smaller and more dynamic cities.
This year's election for the general perspectives is Lisbon, which rises 10 places to number one. The interviewees cite the "quality of life" and the "positive" leadership of the city. In addition, it looks like
Then there is Dublin, another city whose business dynamism calls for real estate investment. In the fourth position is Madrid, which wins a position compared to the last edition of the study. Barcelona, on the other hand, loses steam, leaves the list of the 20 best European cities for real estate investment and falls into the 27th place.