Pricewaterhouse Coopers, PwC, Urban Land Institute, ULI, MIPIM, Moscow, Istanbul, London, Germany,
Moscow has overtaken Paris as the top real estate market in Europe for both investment and development according to a new report titled: Emerging Trends in Real Estate Europe 2008, published by the Urban Land Institute (ULI) and Pricewaterhouse Coopers (PwC).
The report, launched yesterday at the MIPIM conference in Cannes, surveyed 500 industry professionals active in 27 European property markets. Moscow and Istanbul ranked first and second respectively while Hamburg and Munich held the third and fourth spots as Europe’s top investment markets. Paris, which held the top investment rating in 2007, slipped slightly, taking fifth place for investment prospects and sixth place for development prospects. According to the report, the shift in the top markets suggests a desire by industry professionals to branch out of ‘Old Europe’ to investigate new markets and diversify current holdings and developments.
“Without question, Europe is facing a bumpier ride this year than the last few years. The findings in the report show how markets in Europe have become more globally connected and more vulnerable to economic shifts occurring in other parts of the world,” said Richard Rosan, president of ULI Worldwide. “However, the fact that many respondents remain confident about European markets points to the still-local nature of real estate. We are seeing a lot of guarded optimism.”
An improvement in Germany’s economy is reflected in the inclusion of four German cities – Hamburg, Munich, Berlin and Frankfurt – on the list of top ten investment markets. “Despite all the turbulence in the international markets, the German property market is still on the upturn,” the report said. One factor that could affect future investment and development decisions is an ‘expansion in the definition’ of Europe to include parts of the Middle East and Africa, the report said, noting that many interviewees mentioned Abu Dhabi and Dubai as potential markets for business.
Decline in confidence
One of the sharpest rating drops among the European markets occurred with London, which fell to 15th place for investment prospects and 13th place for development opportunities. The report suggested that London, more than other European cities, is experiencing declining economic conditions similar to those in the US, including a drop in consumer spending, falling house prices, a rise in personal indebtedness, worries over home repossessions, and turmoil in the financial sector.
“Tighter credit conditions, higher energy prices, a reduction in euro-based exports and a cooler housing market will have an impact in the months ahead,” said William Kistler, president ULI EMEA/India. “But, we firmly believe that most markets will weather the downturn with a soft landing, due to relatively stable property fundamentals and reasonable economic growth. Those who are patient and prudent will succeed.”
“The story is very different depending on where in Europe you are looking to invest and your appetite for risk” according to Henrik Steinbrecher, global real estate leader at PwC. “At one end of the scale Russia and Turkey are booming, at the other end London has fallen out of favour with many investors. We are seeing the emergence of very different real estate markets in Europe. As investors look for returns in a volatile market, they need to understand the complexities of the markets that they are moving into.”
Top 10 European investment prospects
1 Moscow
2 Istanbul
3 Hamburg
4 Munich
5 Paris
6 Lyon
7 Frankfurt
8 Stockholm
9 Berlin
10 Helsinki
Top 10 European development market prospects
1 Moscow
2 Istanbul
3 Munich
4 Hamburg
5 Lyon
6 Paris
7 Prague
8 Warsaw
9 Stockholm
10 Helsinki
Tuesday 18 March 2008
Monday 10 March 2008
German Hotel News-Rezidor in Frankfurt Airport
Rezidor announces a new Park Inn at Frankfurt Airport, Germany
Park Inn Frankfurt Airport is scheduled to open in early 2010 and adds 209 guest rooms to the Rezidor system.
The property will be built directly in front of terminal 2 and be part of a new urban development called 'Gateway Gardens' - a combination of offices, shopping malls and hotels, and offering more than 10,000 workplaces. Services of the Park Inn will include a restaurant, meeting facilities, a break out- & fitness area as well as an underground parking. 'Frankfurt Airport is the second largest airport in Europe, and with this new property we are underlining our status as one of the largest airport hotel management companies in the region', comments Kurt Ritter, President & CEO of The Rezidor Hotel Group. Rezidor is already managing the Radisson SAS Hotel Frankfurt - famous for its round, blue shimmering façade and located 15 minutes away from the airport. Park Inn is the company's fastest growing brand and known for its colourful corporate design and its fresh, dynamic and innovative approach - aiming to offer 'the best sleep in town' in the mid market category.
Park Inn Frankfurt Airport is scheduled to open in early 2010 and adds 209 guest rooms to the Rezidor system.
The property will be built directly in front of terminal 2 and be part of a new urban development called 'Gateway Gardens' - a combination of offices, shopping malls and hotels, and offering more than 10,000 workplaces. Services of the Park Inn will include a restaurant, meeting facilities, a break out- & fitness area as well as an underground parking. 'Frankfurt Airport is the second largest airport in Europe, and with this new property we are underlining our status as one of the largest airport hotel management companies in the region', comments Kurt Ritter, President & CEO of The Rezidor Hotel Group. Rezidor is already managing the Radisson SAS Hotel Frankfurt - famous for its round, blue shimmering façade and located 15 minutes away from the airport. Park Inn is the company's fastest growing brand and known for its colourful corporate design and its fresh, dynamic and innovative approach - aiming to offer 'the best sleep in town' in the mid market category.
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