Savills ranks London, Paris and Berlin as most Covid-19 resilient cities
While the exact magnitude of Covid-19 and its effect on the real estate investment market still remains uncertain, some European cities are already emerging as more resilient than others, according to Savills latest research report.
Using nine different metrics, from liquidity to the handling of the current crisis, London, Paris, Berlin, Stockholm and Frankfurt make up the international real estate advisor’s top five most resilient cities. These cities are expected to recover faster than others while continuing to see significant levels of real estate investment.
Marcus Lemli, CEO Germany and Head of Investment Europe at Savills, says: “While established cities such as London, Paris and Berlin all feature in our top ten list of resilient cities, investors’ flight-to-safety is the theme that really stands out for me. With four cities in the top ten, Germany’s status as a safe haven for investors could be enhanced due to the Covid-19 crisis. Furthermore, we believe that smaller markets such as Stockholm, Gothenburg and Oslo will prove more resilient especially due to less expected volatility.“
Europe’s powerhouses, the UK, France and Germany, have already started attracting a larger share of real estate investment in Q1 2020, accounting for a combined 73 per cent of total transactions, up from 63 per cent in Q1 2019. Savills expects this trend to continue over the course of the year.
Lydia Brissy, Director European Research at Savills, says: “Our analysis shows that uncertainty will constrain investors’ activity to the prime segment, including prime locations. Therefore, we expect many investors to target core and liquid locations with sectors such as multifamily continuing to rise up the rankings due to underlying fundamentals such as population growth.”