Europe: cities with best real estate prospects 2025

Multiple factors can play a role in the decision to invest in real estate. To calculate how prosperous European cities are on the estate market, the Urban Land Institute considered transport connectivity, forecasted real estate returns, a city’s economic performance, availability of assets/opportunities for new development, market size and liquidity, regulatory environment, digital connectivity, attractiveness to talent, city leadership, housing affordability, and affordability of space for new/small/growing businesses.

Leading European cities for development and investment

London, Madrid, and Paris were the three leading European cities by overall prospects for 2025. As the most important factors for selecting a European city for investment or development, industry experts outline forecast the city's economic performance. When it comes to the issues influencing real estate professionals in their investment choices, the major concerns shared were construction costs, capex requirements, and environmental sustainability requirements.

Leading investment real estate sectors

In terms of investment prospects, the sectors with the highest scores were new energy infrastructure, life sciences, and data centers. This should come as no surprise taking into consideration that the value of investments in industrial and logistic real estate in Europe has increased by more than threefold since 2012.

Select leading cities ranked by overall prospects in the real estate market in Europe in 2025

Characteristic	Rating points average
London	2.72
Madrid	2.12
Paris	2.07
Berlin	1.95
Munich	1.93
Amsterdam	1.75
Milan	1.71
Frankfurt	1.63
Hamburg	1.53
Lisbon	1.43
Barcelona	1.41
Warsaw	1.26
Vienna	1.19
Brussels	1.17
Zurich	1.16
Copenhagen	1.07
Dublin	0.94
Luxembourg	0.92
Rome	0.91
Stockholm	0.91
Manchester	0.86
Athens	0.75
Prague	0.72
Birmingham	0.69
Helsinki	0.65
Edinburgh	0.64
Oslo	0.59
Lyon	0.49
Budapest	0.48
Istanbul	0.33

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Release date

November 2024

More information

Region

Europe

Survey time period

2024

Number of respondents

1,214 property investors

Age group

18 years and older

Special properties

The source does not mention the exact date of the survey.

Method of interview

Face-to-face interview, online survey

Supplementary notes

1,214 property professionals completed surveys, were interviewed or took part in a series of roundtable meetings across Europe as a part of the research for this report.

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