DUBLIN HAS figured among the top 10 European cities most likely to be favoured for property investment this year, according to a new study carried by international estate agent CBRE.
The survey among 340 international investors showed that Dublin figured in sixth place among the 10 most favoured cities in Europe.
Dublin’s appearance, ahead of many larger European markets, suggests a “significant strand of investor interest in a repriced market perceived to have recovery potential”, according to Peter Damesick, CBRE’s chief economist.
The finding will be particularly welcomed by Nama, which is relying on international investors to buy up most of the substantial distressed property portfolios taken over by the agency.
Dublin’s appearance on the list is all the more surprising because of the virtual absence of bank debt. However, some of the potential investors are probably hoping to persuade Nama to make funding available as part of the deals.
The single most attractive city for investment in the CBRE study is London, selected by 37 per cent of the respondents.
This is in line with Britain’s position as the most sought-after country for investment in 2012 and with London’s specific attractions as a global financial centre and the most active property investment market in Europe.
The next most popular city in the survey is Warsaw, chosen by 12 per cent of respondents because of good economic fundamentals and some pricing advantages compared with more mature markets.
Warsaw’s choice rather than the much larger Paris market is causing some surprise, putting the French capital in third place with 9 per cent of respondents favouring it.
The relative position of Paris is in some contrast to its high level of investment activity in 2011, when it showed a growth of 36 per cent on 2010 and was second only to London in investment turnover.
Close behind Paris, the next two most preferred cities are Munich and Berlin. The other three cities in the top 10, each chosen by between 2 and 3 per cent of respondents, are Madrid and Stockholm as well as Dublin.
Marie Hunt, head of research at CBRE, said the increase in Britain’s attraction to real estate investors in 2012 could be seen partly as a reaction to the ongoing problems and uncertainty in the euro area.
Referring to Dublin’s placing among the top 10 cities being targeted by investors, she said there had been a notable increase in the volume of investors seeking investment opportunities in the Irish market. The lack of prime property assets to satisfy this demand was, however, frustrating, Ms Hunt added.
