PwC overall stated that 44% of respondents said that Brexit will increase real estate investment in the rest of the EU, while 78% of respondents stated that Brexit will decrease real estate investment in the UK. The report was compiled based on the opinions of nearly 900 real estate professionals including investors, developers, lenders and advisors in Europe – including Ireland.
Speaking of the list itself, Lisbon took the top spot for 2019, up from joint 11th place in 2018, followed by Berlin, Dublin, Madrid and Frankfurt.
Regarding Dublin, the report noted that the world’s leading tech companies are rapidly expanding in the city, which pushed it up the rankings.
The report stated that while Dublin is several years into its recovery, it still has potential despite some questions over supply picking up. It also added that the city’s success is not just down to international demand, and that domestic occupiers have also been very active in acquiring space in the last 12 months.
Sites around Dublin airport and Dublin Port are also tipped for strong growth in logistics. Brexit is also a factor with Irish exporters and retailers preparing to reconfigure supply chains.
The report also found that alternative real estate and residential – in all its forms – dominated the sector preferences of survey respondents, marking a remarkable shift in industry sentiment over the past few years. Only 28% of survey respondents stated that they would even consider investing in alternatives in 2015. This year itself, almost 60% of respondents are already investing in alternatives in some way, and 66% wish to increase their holdings.
Joanne Kelly, Real Estate Leader at PwC Ireland, stated that the last five or so years has seen a remarkable shift by investors towards alternative real estate, or “niche” sectors.
She stated this was in response to the innovation that is disrupting the more traditional sectors and a number of long term trends such as demographics and urbanisation.
“Residential stands out in this respect, with seven out of the top ten sectors preferred for investment and development, based on some form of residential, ranging from co-living, student housing, retirement living to social housing and regular residential housing.”Kelly added.