London scored 74.2
out of 100, while other cities in Savills’ top five included Paris (72.7),
Berlin (63.1), Stockholm (57.9) and Frankfurt (56.5).
scores were based on metrics including the Covid-19 Government Response
Stringency Index from the University of Oxford; retail and tourism GVA; growth
forecast; five-year investment volumes; five-year average share of office /
multifamily / cross-border investment; post-GFC investment volumes and
investment activity in Q1 being resilient, Savills expects investment volume to
fall by approximately 40% compared to the same period last year.
said it expected overall European investment volumes will end the year at
between €170bn (-34% year on year) and €125bn (-54% year on year).
European research at Savills, Mat Oakley said: “Uncertainty will constrain
investors activity to the prime segment, with a focus on core and liquid
locations. Unsurprisingly, cross border investment activity dropped
significantly over the course of the second quarter and is likely to remain
subdued until the reopening of the borders and flights. Some foreign capital
will continue to hit the European property investment ground through
international funds with a good network of European offices or fund managers.
Cities such as London with already established cross-border networks are in a
better position to tackle these challenges, as are cities with a buoyant
domestic investor appetite which London also benefits from.”
Down, head of Central London investment at Savills, added: “The office sector
concentrates the largest investable existing stock for institutional investors
and as a result liquid office markets will continue to capture strong investors
interest. London boasts one of the most constricted office markets in the world
and therefore continues to be valued as a relative safe haven to invest.”