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June 8, 2015

Five cities in northern Europe are ‘punching above their weight’ in the real estate investment stakes, taking a disproportionate amount of capital relative to their size.

London, Munich, Oslo, Stockholm and Copenhagen feature in the global top five cities when real estate investment is measured against their economic size, according to new research from JLL.

The findings show that investors are increasingly factoring social barometers such as quality of life and environmental credentials into their investment strategies.

“JLL’s City Investment Intensity Index highlights cities that are punching above their weight in terms of attracting real estate investment,” says Masha Seymour from JLL’s Global Research team responsible for the report.

“Munich, Stockholm and Copenhagen, in particular, are tech-rich cities with a high quality of life so it’s little surprise that they’re increasingly on the radar of global investors.”

London topped the list, thanks to its position as the world’s most liquid and transparent real estate market, while Oslo is dominated by the healthy investment appetite of its cash-rich domestic institutions.

Technology hubs also scored well among the U.S. cities making the top 25, including San Jose / Silicon Valley (12th), San Francisco (13th) and Austin (19th).

Elsewhere, Sydney (6th) remains a firm favourite with domestic and international investors, while New Zealand’s Auckland (7th), climbed six places as investment volumes doubled over the past year.

Financial centres also continue to feature high in the list, with three of the world’s most important financial hubs – New York (23st), London (1st) and Singapore (17th) – as well as Frankfurt (9th), all making the top 25.  Warsaw, which has shown robust growth as a financial centre, appears at number 15.

View the full list in this infographic.

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