Spain and Ireland top Residential Property targets
Words: Ashley Rigg
Published: 29th January 2014 VIA Global Edge
Spain and Ireland are the two European countries which offer the best residential investment prospects according to a survey of institutional investors by PwC and Urban Land Institute (ULI).
With prime established markets such as the UK experiencing strong growth and fierce competition for scarce assets, large investors are turning their attentions to some of the countries worst hit by the downturn.
The market experiencing the biggest change in sentiment is Dublin which has risen dramatically in the city investment rankings, moving up from 20 in last year’s report to second in 2014. Dublin’s real estate market has been transformed from a no go location among investors only two years ago, to being one of the hottest markets in Europe. The report finds that 51% of respondents now see good buying opportunities in Ireland.
An even greater number of investors believe Spain offers fantastic opportunities. 67% of respondents believe that there are now good buying opportunities in Spain.
Joe Montgomery, chief executive of ULI Europe however has doubts over the sustainability of investment demand.
‘Investor interest is now moving to Spain, where there are signs that opportunistic investors, who entered the market when Sareb opened for business last year, are now being followed by mainstream institutions. However, with limited signs of tenant demand and rental growth, questions remain as to how far the market recovery can go”.