Paris is on the European CRE investment post-Covid podium - Savills
The extent of the Covid-19 epidemic and its consequences on the real estate investment market is still uncertain. Nevertheless, some European cities are already proving to be more resilient than others, according to a recent study by Savills. Assessed on nine criteria ranging from their level of liquidity to their management of the current crisis, London, Paris, Berlin, Stockholm and Frankfurt appear to be the five most resilient cities among European capitals.
These cities are expected to recover from the crisis faster than others, while still experiencing high levels of real estate investment, says Marcus Lemli, CEO President and CEO Germany - Head of Investment Europe Savills: "While we believe that smaller markets - such as Stockholm, Gothenburg and Oslo - will be more resilient than average, particularly due to the expected lower volatility, particularly attractive cities such as London, Paris and Berlin are all in our top 10 most resilient cities. The need for security is paramount for investors."
Thomas Canvel, Director of the Investment Department of Savills France, adds: "France remains an attractive market for foreign investors, attracted by the strength and diversity of the French economy. Many national players (SCPI, insurance funds, etc.) also ensure sustained demand."
It appears that large European countries such as France, the UK and Germany have already started to attract a higher share of real estate investments in Q1 2020, representing 73% of total European transactions compared to 63% in Q1 2019. According to Savills, this trend is expected to continue this year.
According to Lydia Brissy, European Research Director at Savills: "Our analysis shows that the current state of uncertainty will limit investor activity to prime assets and prime locations. We therefore expect the majority of investors to target core and liquid asset classes and that sectors such as coliving will continue to grow in popularity, driven in particular by population growth."
