Property Markets Stay Strong In London And Paris
There has been plenty of speculation regarding property investors and the broadening of their search criteria of late. In the UK, many commentators have been pontificating about the move away from London and the southeast, and the same is true across much of the continent. European gateway cities are old hat, apparently.
However, when considering making an investment away from major hub cities, one has to take into account factors such as shifts in demographic and localised growth. The thing is, fundamentals such as these are often driven by how the major cities in the region are performing, and London property investment looks set to remain strong for the foreseeable future.
Leading By Example
Despite the speculation of an investor exodus away from the larger, more dynamic European cities, a recent report states that two of the biggest across the whole continent are in excellent health. The LaSalle Investment Management’s European Regional Growth Index (E-REGI), a study and ranking of Europe’s top 100 cities, shows that London and Paris are once again at the top of the pile.
This is a report dealing in cold, hard facts, not conjecture. The established investment markets and the resilience of cities such as these means that there are still fine investment opportunities to be had, even if things may not be as easy as they once were.
The Great Pretenders
While other parts of the UK are indeed showing their teeth far more than they did just a decade ago, cities like London will be hard to topple. Manchester and Bristol both made gains in the report to jump to 17th and 25th respectively, and Birmingham is up two places to 37th, but the headline act is once again the capital city.
Cities such as London that have strong trends related to Demographics, Technology and Urbanisation (DTU) will always be more likely to outperform those who don’t. The cities regarded as the best performers will have a strong base in each of these areas and have the ability to grow and transform in each sector too. It is this stability paired with flexibility that differentiates them from the pack.
Dynamic Urban City Centres Still Attract Blue Chip Companies
Many large corporations and organisations have been looking at locating sections of their companies away from the major cities in order to cut costs. Some have even acted upon it, moving swathes of their business away from the major cities.
The fact remains, however, that cities such as London and Paris will always be in demand, whether it be blue chip companies or high-end retailers. While regional offices, or in some cases even headquarters, can certainly be located outside of these cities, it is preposterous to think that they would have no representation there whatsoever.
These preferred locations have stood the test of time and it will take a sea of changes to reverse the appetite for property in these rich and vibrant cities. Will these changes come anytime soon? Not as far as we can see.
The major cities of Europe may be interchangeable with each other, but to think that the more regional challengers could surpass them is really no more than a flight of fancy.
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