Among European countries where real estate investors expect the highest returns, Poland ranks fifth, while the capital Warsaw is placed ninth among European cities, surpassing Stockholm and Prague, according to the report “European Investor Intentions Survey 2023” by the advisory company CBRE.
The report also states that the United Kingdom is the most desired investment location in Europe, surpassing Germany for the first time since 2021, and London ranks first among European capitals.
The majority of investors are optimistic about the resilience of the real estate sector to economic slowdowns, with many closely monitoring the market for opportunities such as an increase in capitalization rates, says Director of Capital Markets at CBRE Przemysław Łachmaniuk.
Half of real estate market investors expect their buying and selling activity to increase in 2023 or remain at the same level as the previous year. Over half of the investors surveyed say they are positive about their buying and selling activity in 2023. There is also significant interest in real estate investments in Europe among investment funds. Currently, the most popular areas for investment in Europe are offices, especially those of the highest class, and rental apartments, the report indicates.
Among the countries that real estate investors will target in 2023, Poland ranked fifth. After the U.K., Germany, France and Spain followed. Poland managed to outperform the Netherlands, Switzerland, Norway, Ireland, and Portugal, among others. Italy just missed the top 10. Spain had the biggest jump from the previous edition of the report, climbing three spots higher.
Investors showed interest in the cities of Southern Europe as well. Madrid, Lisbon, and Barcelona all ranked within the top 10, with Madrid in fifth and Lisbon and Barcelona tied for sixth.
The top four were London, Paris, Amsterdam, and Berlin. Warsaw ranked ninth and was just behind Copenhagen in eighth place, surpassing other major European cities such as Frankfurt, Stockholm, and Prague.
“The main challenges for 2023 mentioned by real estate investors include rising financing costs and more restrictive loan terms, as well as concerns about a recession. Nevertheless, most of them plan to remain active in the real estate market,” says Przemysław Łachmaniuk of CBRE.