Five Cities Study

New Economy, in partnership with the Organisation for Economic Co-operation and Development (OECD), has undertaken a major piece of research looking at what is currently proving successful in encouraging investment in European cities’ real estate sectors, with a particular focus on the cities of Amsterdam, Barcelona, Hamburg, Lyon and Manchester.

The report was launched to an audience of over 100 global property investors and developers at a keynote forum at MIPIM, the property industry’s annual real estate convention.

The study was commissioned to identify the policies and actions that are proving successful in today’s climate in encouraging additional investment into cities like Manchester. It is evidenced by a comprehensive baseline, detailed interviews across the continent and a large survey of almost 300 targeted global investors and developers.

It finds that the most important factor for investors as to whether to invest in a city or not is the strength of its local economy, which 90% of respondents cited as very important or important, and the strength of the property market, identified by 80%.

Investment in infrastructure was identified by 76% of respondents as the most significant thing a city can do to increase its attractiveness as a location for investment.

The research also confirmed many long-term trends, for example office space was found to be the most popular property investment (amongst 72% of respondents), with retail the next most popular (at 45%).

The general consensus of the research is that, despite current economic conditions, each of the five cities is faring well, although the industry itself broadly expects investment levels to remain at the subdued levels seen since the global financial collapse in 2008.