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08. Dezember 2011 
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Toulouse, Munich und Hamburg top the list
Toulouse, Munich and Hamburg are the most attractive locations for buy-to-let investments. This was the result of a study carried out by Patrizia Immobilien AG, which the Augsburg-based company has just published. The study compared 82 European cities in terms of their fundamental demographic and economic data, such as economic and population growth, population density, unemployment rate and the number of employed, as well as their institutional framework, i.e. the legal conditions and the existence of an institutional rental market for apartments.
“Investors are finding the best risk-return profiles in north-west Europe, that is to say Scandinavia, Germany, France and the Netherlands”, said Dr. Markus Cieleback, Head of Research at Patrizia Immobilien AG. The authors of the study have divided the cities into four groups in terms of their risk-return profile: The first group is of cities in which above-average income can be achieved with below-average risk. This group includes mainly the north-west European capitals and the majority of secondary locations in these countries. The second group is composed of cities that have a below-average risk outlook and below-average income prospects. Included in this group are the Italian cities, a few cities in Greece and Spain as well as individual north-west European secondary location. The third group is made up of cities with below-average income along with comparatively high risk. This group includes the majority of cities in the Iberian Peninsula and the English regional markets as well as a range of Eastern European secondary locations. Finally, the last group is formed by the cities that compensate for their comparatively high risk with above-average income. Among these are the cities in the Baltic States and Poland as well as most Eastern European capitals.
“The results of our analysis offer investors operating all over Europe who want to get involved in real estate an initial insight into the relative attractiveness of the individual markets studied”, explained Cieleback. However, the expert believes that a specific investment strategy requires an analysis of the local vacancy and supply-side risks. “It is quite possible that apparently attractive markets can disappear from the investment focus, while markets that, at first glance, seem less attractive are taken on board as a result of attractive supply conditions.”
“Investors are finding the best risk-return profiles in north-west Europe, that is to say Scandinavia, Germany, France and the Netherlands”, said Dr. Markus Cieleback, Head of Research at Patrizia Immobilien AG. The authors of the study have divided the cities into four groups in terms of their risk-return profile: The first group is of cities in which above-average income can be achieved with below-average risk. This group includes mainly the north-west European capitals and the majority of secondary locations in these countries. The second group is composed of cities that have a below-average risk outlook and below-average income prospects. Included in this group are the Italian cities, a few cities in Greece and Spain as well as individual north-west European secondary location. The third group is made up of cities with below-average income along with comparatively high risk. This group includes the majority of cities in the Iberian Peninsula and the English regional markets as well as a range of Eastern European secondary locations. Finally, the last group is formed by the cities that compensate for their comparatively high risk with above-average income. Among these are the cities in the Baltic States and Poland as well as most Eastern European capitals.
“The results of our analysis offer investors operating all over Europe who want to get involved in real estate an initial insight into the relative attractiveness of the individual markets studied”, explained Cieleback. However, the expert believes that a specific investment strategy requires an analysis of the local vacancy and supply-side risks. “It is quite possible that apparently attractive markets can disappear from the investment focus, while markets that, at first glance, seem less attractive are taken on board as a result of attractive supply conditions.”
