Dublin in the Top 15 EMEA (Europe, the Middle East and Africa) cities being targeted by international investors according to the latest CBRE’s annual Investor Intentions Survey being launched at MIPIM 2017.
The report ranks London as the most attractive European city for real estate investment for the sixth consecutive year.
Dublin remains in the Top 15 EMEA cities being targeted by international investors having seen more than three quarters of investment spend in 2016 emanating from non-domestic investors. Thirty one per cent of Irish investment spend in 2016 was classified as European with 24% emanating from the US and more than 10% coming from the UK.
Whilst London was ranked the most attractive city, Germany has retained the top spot as the most attractive country for real estate investment in EMEA, preferred by 22% of respondents in the CBRE survey. The UK (20%) was once again the second most popular country and both Germany and the UK have increased in popularity from the previous year, up from 17% and 15% respectively in 2016. Investors value their relatively high liquidity and transparency.
Offices remain the most attractive sector in 2017, although its lead over other sectors is contracting. Investors now perceive industrial and logistics as the second most attractive sector, motivated by structural changes such as the broad-based integration of e-commerce in the supply chain and the development of logistics as an institutional investment product.
This is also borne out in the Irish market where rental growth is expected to be strongest in the logistics sector in 2017.
The survey also highlighted the increasing attraction of alternative investment sectors, with 71% of respondents indicating that they had already invested in alternatives whilst 64% are actively pursuing opportunities in the sector – another trend that is becoming increasingly evident in the Irish market.
Executive Director of Capital Markets at CBRE Ireland, Johnny Horgan said, "Europe remains a key target for property investors globally and the economic outlook for the European economy remains positive. Whilst the core markets of the UK and Germany remain the largest investment destinations, markets such as the Nordics and CEE are increasingly important components of global investment strategies."
He added, "Furthermore, cities such as Madrid and Dublin are both ranked within the top fifteen most attractive European investment destinations, highlighting the popularity of Europe’s recovery markets as investors seek value-add investment opportunities.”