The 31 best European cities for real estate investment in 2022 were gathered in a report by PwC and ULI.

The Lisbon real estate market will continue to attract real estate investors in 2022 according to the latest PwC and Urban Land Institute (ULI) report, which place the Portuguese capital among the 20 most attractive European cities for real estate investment this year . In this ranking, London is in first place, followed by Berlin and Paris.

Analysing the 31 European cities, PwC and ULI placed Lisbon in the 16th position of the ranking (-1 place than in 2021). But it notes in its report "Emerging Trends in Real Estate - Road to Recovery" that the main indicators have improved compared to last year: investment prospects increased by 3.92 points, while development prospects rose by 3.80 points. According to the report's classification, in a local view, investment expectations in Lisbon are "good" in 2022.

At the top of the table is London, the capital of the United Kingdom (+1 position than in 2021). Even after Brexit that pushed almost 400 financial companies to Europe, "London may have the potential to reinvent itself", says the report. This is because instead of focusing on being a financial metropolis, it can start turning to technology and science. "The London market has depth and liquidity and, in the end, what prevails in times of crisis is stability", highlights Richard Garey, partner responsible for the business area at PwC Real Estate.

The German capital Berlin is the second most attractive European city for real estate investment in 2022, according to the list. And Paris (France), Frankfurt and Munich (both cities in Germany) make up the top 5. Demand in these cities is high. And “many people are being excluded from Germany and Paris. And, by default, they look for alternative markets.” As a result, “Lisbon, Madrid, Milan and Amsterdam continue to benefit from this”, he added.

Looking at southern Europe - where cities like Lisbon or Madrid enter -, "real estate related to leisure tourism should recover strongly from the impacts of Covid-19", according to a local consultant who participated in the study, which also sees the “Germans, Swiss and some Spanish investors very aggressive and eager to buy in the office market”.

At the bottom of the table are cities like Moscow, Russia, Istanbul (Turkey) and Budapest (Hungary). These are the least attractive cities for large real estate investors in 2022.