"Overpriced" and scarce real estate in Germany's largest cities are deterring investors, according to a consultants' study. Instead, they're turning to Lisbon and London — despite Brexit.
Eight-hundred professionals at investment houses, banks and building firms told the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) in a survey published Monday they still valued Germany's stability, but were looking elsewhere in Europe for property prospects.
Britain – despite Brexit – summed highest for real estate investment at €68 billion ($77.6 billion) over the 12 months through to September, the survey found.
Of that, London, accounted for 20 billion "at odds with the increasing volume of concern expressed by many." For 2019, investors expected British prices to sink.
Niches with 'social value'
A "remarkable shift" to "niche" sectors had occurred over the past five years, added Gareth Lewis, head of real estate research at PwC - reflected, said the report, in the "growing influence of social value alongside financial returns."