London named as best European city for real estate investment

LONDON has been named the most attractive European city for real estate investment, knocking Munich out of pole position.

In the annual European regional economic growth index, compiled by LaSalle Investment Management, the capital emerged victorious, while all other UK cities were close to, or in, the bottom half of the table of 104 European cities.

While Manchester also retained its position on the list, dropping just one place to 36, Belfast, Liverpool and Sheffield were named as some of the least favoured places in Europe.

LaSalle’s criteria for ranking the 104 major European cities included economic growth factors, overall wealth and the attractiveness of the local business environment.

Other highly-ranked cities included Paris, Munich, Moscow, Stockholm and Oslo.

LaSalle said London owed its premier placing to its “dynamic and flexible” economy, which has bounced back quickly after the financial crisis. It noted investment for the 2012 Olympics and Crossrail are likely to continue this economic success. Conversely public sector cuts are likely to bring more bad news for other UK cities.