Dublin takes fourth position in the list of Europe’s most attractive cities for property development and investment having generated €4 billion of real estate activity in the 12 months to end September 2016.
This is according to the 2017 Emerging Trends in Real Estate Europe report published jointly by PwC and the Urban Land Institute (ULI), based on the opinions of almost 800 internationally renowned real estate professionals in Europe including investors, developers, lenders, agents and consultants.
The five leading cities for overall investment and development prospects in 2017 are Berlin at Number 1, followed by Hamburg, Frankfurt, Dublin and Munich.
Ninety percent of almost 800 real estate professionals in Europe predict that UK investment and property values will fall over the next 12 months as a result of the UK referendum vote to leave the European Union.
But despite the uncertainty over London and the UK other regional cities, most interviewees have faith in its medium- to long-term future as a key global city with frequent reference to the opportunities presented by the recent devaluation in sterling.
International political instability is expected to pose significant challenges in the coming year with almost nine out of ten (89%) of respondents listing it as their top concern for 2017. Forthcoming elections in France, Germany and the Netherlands, as well as concerns about migration and terrorism, add to this uncertain outlook.
Forty-five percent of respondents believe that the migration crisis will get worse in the coming year and interviewees reported terrorism as a key threat to the security of public spaces and private buildings. This international political instability is not expected to dissipate quickly; nearly two-thirds (62%) of survey respondents expect political uncertainty in Europe to worsen over the next three years.
Despite much uncertainty and change in Europe, however, respondents are only slightly less confident about their business prospects than they were last year. Just under half expect no change to confidence, profitability or headcount.
Furthermore, the report finds that capital flows will remain strong and investors will continue to value European real estate for yield in comparison to the attractive risk/return expectations in other asset classes.
Commenting on the research, PwC Ireland Real Estate Leader, Joanne Kelly said, "With an economy performing well over the average EU GDP level, a young fast-growing population, the most business friendly tax regime in Europe and many multinationals based here, Dublin remains a highly regarded location for real estate development and investment."
She added, "Brexit is also expected to benefit Dublin as a potential alternative to London, with investors believing that there will be opportunities provided by financial services operations looking to set up here in order to continue to access the Single Market."