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15 October 2018 Comments (0) Atenor, Real Estate

Corporate real estate: the best places to invest

Semester after semester, corporate real estate maintains its position throughout the world. According to the latest international corporate real estate barometer by the RICS, the trends remain broadly positive in Europe. In particular in Amsterdam, Budapest and Lisbon. Some explanations.

Which cities attract the most businesses? Which ones offer the best real estate? The study of the RICS (Royal Institution of Chartered Surveyors) is a quarterly barometer of the main trends in the investment market and the rental market for commercial real estate. It is a reference in the sector. For its latest release, the Institute interviewed 1,965 companies around the world. And, on the whole, the result is rather encouraging for Europe, where investment demand has continued to grow at a sustained pace during the second quarter of 2018 on all segments of the market (offices, industrial premises and shops).

Despite the first signs of slowing growth in the Euro area, the dynamics once again appear to be the strongest in some parts of Europe where the appetite of investors for corporate real estate exceeds the offer. The valuations are the most positive in markets such as Amsterdam, Lisbon and Madrid, who benefit from this interest in office space. For several years already, they are among the most popular destinations, but new hotspots are gaining ground with investors, especially in Central and Eastern Europe. The more attractive? Budapest.

The “new Lisbon”

This significant improvement comes in the context of the robust economic growth in these markets, which all displayed an annual GDP growth rate of 3% or more. Behind the success of a city like Budapest (often referred to as the “new Lisbon”), it is also necessary to see the combined effect of low interest rates, a favourable tax climate and an unprecedented influx of tourists. Budapest is considered a high value host city praised by an international clientele.

Although more modest, Frankfurt also sees a sharp rise in investor demand. Notable exceptions: Zurich, Geneva and London. Nearly three-quarters of the surveyed professionals consider that the market of the British capital is in recession. Because of Brexit, many companies are looking to relocate part of their activities outside of the United Kingdom.

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