Real estate throughout Europe continues to prove itself as a safe-haven asset in times of crisis. Despite the fact that the COVID-19 health pandemic is in its third wave in much of Spain and Europe, major international investors remain focused on real estate assets across Europe. There have been some new additions to the ranking of the most attractive European cities to invest in the real estate sector in 2021: Barcelona has dropped out of the top 10, while Madrid maintains a strong position.
This is according to the Emerging Trends in Real Estate study carried out by PwC and the Urban Land Institute in which investment funds, developers, property companies and other market players highlight the potential of the sector at a time of low interest rates and economic uncertainty. In spite of this, the results of the 2021 report show that we won't see the same opportunities in every city.
So, according to the report, where is the best place to buy property in Europe in 2021? This year, Berlin is once again crowned as the metropolis that attracts most interest in Europe, thanks to factors such as its well-established office market and the measures taken by the German government to curb the advance of COVID-19. Thus, the German capital regains the top spot three years after its last victory (in 2019 Lisbon took the top spot, with Paris coming out number one in 2020).
The second most prominent city when it comes to real estate investment in Europe in 2021 is London, followed by Paris, thanks to the liquidity of their respective real estate markets. Frankfurt, Amsterdam, Hamburg and Munich are just behind in the top three, followed by Madrid. The Spanish capital is the only Spanish name in the top 10 this year (in 8th position), as Barcelona has dropped from 9th position 13th due to regulatory intervention in real estate and political instability, according to PwC.
Milan and Vienna are the other two cities that complete the ranking of the 10 best places to invest in property in Europe in 2021, ranking ahead of the Catalan capital, as well as Dublin and Brussels. On the other hand, Barcelona is more attractive than Warsaw, Lisbon, Stockholm, Luxembourg, Copenhagen, Helsinki and Zurich when it comes to real estate investment in 2021.