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Paris Overtakes London as Europe’s most popular property market

A prominent index of the most popular European property markets has found that Paris nudged London out the top position and forced it into second place for the first time in four years.

Experts are saying that post-Brexit uncertainty will result in a dose of uncertainty for the London property market.

La Salle, the American investment firm, also confirmed that regional UK cities such as Birmingham and Manchester will be affected more strongly than London as corporate hiring slows down due to post-referendum economic uncertainty.

Cities located in France and Germany have climbed higher in the property market rankings as their economies soared and reforms in the French labour market brought unemployment figures down, all of which have stoked the housing market and increased consumer demand.

At present the top 10 property markets in Europe are as follows:

1. Paris
2. London
3. Stockholm
4. Munich
5. Luxembourg
6. Istanbul
7. Dublin
8. Madrid
9. Stuttgart
10. Oslo

La Salle found that the appeal of European cities to real estate developers and investors had waned slightly due to political uncertainty. The firm’s head of research and strategy, Mahdi Mokrane, explained that political decisions, as opposed to simply economic conditions, had changed the outlook for several European cities in 2016. Investors are unsure about the future of any market where there is an abundance of economic uncertainty.

Mr Mokrane added that the uncertainty attached to the future trade relationship between the UK and the EU was having an adverse effect on the UK’s economic prospects, even though the capital and the remainder of the south east continued to be robust in a European context thanks to a diverse economy and higher population.

Out of all the cities in the European top 10, Dublin was the largest mover according to an index that examines mid-term prospects for the property market. The Irish city jumped five positions to occupy seventh place.

Dublin was buoyed by an explosion of growth, with GDP going up by one-quarter throughout 2015. Experts predict that in the wake of Brexit uncertainty, the Irish capital could be well-positioned to lure business away from the UK as well as appeal to investors seeking an English speaking entry point into the EU.

Specialists in Construction Insurance

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