13:49 PM, 13th January 2016, About 7 years ago
For the first time since 2012, London has slipped out of the top 10 best cities in Europe for property investment to 15th place as a result of high prices and a crunch on yields.
Berlin and Hamburg came out on top in 1st and 2nd place, while Birmingham was 6th according to the Emerging Trends in Real Estate report by PwC and the Urban Land Institute.
The report has been put together following interviews with more than 500 developers, investors and property managers across Europe, with each asked to rate individual cities based on investment prospects and for their impressions on the future of the property market.
Birmingham has now remained in 6th place for the second year running and this could be due to companies such as HSBC moving to the city.
A spokesperson for Discount Landlord said: “As companies move their main businesses to Birmingham, they will be attracting many employees, meaning that demand for rental property will be high.”
“Aside from London, landlords should consider other up and coming cities in the UK which might prove to be as profitable in the long-term. Other UK cities to look out for Edinburgh which has come 18th in the report,” added the spokesperson.
While London has slipped down the list, most still see it as the first choice for those who want to preserve their wealth.
Gareth Lewis, the director of Real Estate at PwC, said: “London is the largest real estate market in Europe. Money tends to plough into it during the harder times, as people are looking for a safe bet, somewhere to keep their money, and as prices go up and yields compress, people looking for better rewards will look to secondary cities.”
A theme that the report highlighted was that private rented apartments and other residential investments are seen as a big area of future growth in London.
Here is the list of the top 25 European cities with the best investment prospects: