A new study from property services company JLL has revealed the top European cities for real estate investment. Frank Vogel looks into the significance of this report for investors going forward.

1. Study Reveals Top European Cities for Real Estate Investment
A new study from property services company JLL has revealed the top European cities for
real estate investment. Frank Vogel looks into the significance of this report for investors
going forward.
City Momentum Index
Industry portal Property Wire reports that JLL has recently released its 2016 City Momentum
Index, which lists the top 12 European metropolises for real estate investment. London
topped the rankings, followed by Paris and Dublin, with Istanbul breaking into the top 12 for
the first time. Commenting on the Index Director of Global Research at JLL, Jeremy Kelly,
said:
“The European top 12 identifies those cities where change is occurring most rapidly. Istanbul
joins this group for the first time, where, despite geopolitical headwinds, it displays
remarkable dynamism. The ranking combines real estate dynamics such as investment,
property prices and construction with socio-economic factors… Istanbul is a city which is
taking bold steps to improve its infrastructure and is building a modern real estate portfolio
as it grows into its new skin as a global business centre.”
Rotterdam, part of the Randstad mega-city
Performance globally
London also topped JLL’s global Index for the second year running. This was due to strong
economic growth and commercial real estate fundamentals, combined with initiatives such
as the US$22 billion (bn) Crossrail project which are transforming its transport network.
Projects such as the new US$1.5bn Imperial College London campus are also enhancing
London’s reputation as a global education and technology hub. Together, these factors
make London the best city for real estate investment globally.
It may have placed second in Europe, but Paris ranks outside the top 20 globally, although it
has risen from its position on last year’s Index. The French capital ranks highly for factors
such as innovation and education e.g. it has the biggest tech workforce in Europe. Also,
plans such as the Grand Paris Project are destined to improve the city’s transport
infrastructure, creating new opportunities for real estate investment and positioning its
property market for strong momentum in future.
New World Cities

2. The Hague, another part of the Randstad
Well-known metropolises like London and Paris may have taken the European Index’s top
spots, but it was dominated by what the report calls “New World Cities.” What is interesting
is that the report specifically mentioned the Dutch city of Randstad (4th
), besides Munich
(5th
), Stockholm (6th
), Copenhagen (7th
) and Berlin (11th
). Meanwhile bigger UK cities such
as Manchester (9th
) and Edinburgh (10th
) performed well on the Index. Also cities that ranked
outside the European top 12, like Brussels and Vienna, showed huge improvement globally.
The interesting part is that Randstad is not a real city but a conglomerate of cities that join
and intersect with each other to form what is known in the Netherlands as the Randstad. JLL
explained why smaller, innovation-orientated cities like Randstad and Munich performed well
on this year’s Index. They suggested that these metropolises combine robust infrastructure
platforms with high quality of life factors and an ability to withstand changing economic
circumstances, making them attractive prospects for real estate investors.
Explaining further, Kelly added:
“Investors are increasingly looking towards long term trends such as demography and
technology when making asset allocation decisions, driven by their search for sustainable
income… Cities such as Stockholm, Berlin and Copenhagen have among Europe’s highest
concentrations of high-tech start-ups, strong research systems and are home to many
millennials, a testament to the dynamism and long term potential of the continent’s New
World Cities.”
Frank Vogel’s commentary
"It is clear that the value of the real estate market is driven by the exactly the same
sentiments why people want to live somewhere or where businesses choose to join forces.
The Dutch area Randstad is a main centre for economic growth and new developments due
to the concentration of people and businesses.
The infrastructure is perfect for both. However, due to its success it becomes now more and
more a victim of its own success since you can only have so many people on a limited
amount of km2. Obviously that will drive up the value of the real estate which is interesting
for those who are active in this investment category."
Who is Frank Vogel?
Frank Vogel is a financial asset manager and real estate investor based in Amsterdam, The
Netherlands. He is also a philanthropist and founder of MF Foundation, which strives to
contribute to a better world through a range of financial projects and other initiatives.