The list in question is headed by Berlin, Copenhagen, Frankfurt, Munich and Madrid, which consists on the top 5 of the 31 European cities under analysis. The Portuguese capital, however, keeps its interest in considerably lower prices and in expectations of economic growth, besides the Government be seen as "flexible, creative and technologically advanced", refers this report.
Investment perspectives for Lisbon are good, and rents are expected to grow in 2018, which encourages investors. And if, on the one hand, some of the investors surveyed in this study believe that it is a "too small and too liquid" market, the same number refers that they are already investing or planning to enter on this market, namely by increasing their degree of risk. Investors who already invest in several European cities and plan to include Lisbon in the near future are an example mentioned in the ULI report.
Lisbon is indicated by its market opportunities concerning offices or retail, since investors can purchase fully occupied buildings with yields of 7%. Parque das Nações and Santos area are considered the most attractive areas. In terms of retail, investors look for the valuation of assets (shopping centers) already existing.
And with the overheating of the residential market in the center of the city, to which ordinary Portuguese can hardly access, there are opportunities for investment and promotion in other areas of Lisbon, as demonstrates one of the investors surveyed, who guarantees to be aware of this phenomenon.
The truth is that, in general terms, the real estate market in Europe remains “cautious but positive”, according to the study. Europe is also taking advantage from some disinterest in the UK, as a result of Brexit and the Macron elections in France, that have raised the mood of investors in the country. Germany, for its part, remains the "safe haven" of the Old Continent.
The delay in raising interest rates and geopolitical instabilities are some of the biggest concerns in the market. Some investors believe that it may be reaching the peak of growth of this market cycle, although there is still solid growth in some European markets.