The European real estate market will continue to be a future hope for investors in 2019. Both the consulting firm PwC and the research and education organization Urban Land Institute came to this conclusion in the recently published report of European Real Estate Market Trends in 2019. How will the European real estate market conduct itself taking into account the uncertain situation that some countries are going through? This is the question that many real estate investors ask themselves. Furthermore, most of them are very concerned with regard to Brexit and interest rates. All of them have welcomed, with great relief, the 2019 report carried out by the European Real Estate Market Trends as it shows that there is hope and no cause for alarm. This is due to the fact that in 2019 the European housing market will still continue to attract investors even though a slight slowdown, with regard to 2018, will take place. In this report, we come to the conclusion that some investors are concerned about the possible lack of quality housing in 2019. In addition, another conclusion that can be drawn is the consolidation of Madrid as one of the most sought-after destinations for European investors. Let us analyse this in detail.

MADRID, ON THE RISE

The report that was carried out by PwC and by Urban Land Institute was based on a survey of 885 professionals of the European financial sector. As we have already mentioned, there is symptomatic concern related to the lack of property assets. In this regard, 70% of the professionals surveyed expressed their concern. Furthermore, this circumstance will occur in 2019 as there will be a considerable price increase. In any case, these two factors are not so disturbing to lead investors to withdraw their faith in Europe during 2019. Europe will continue to be one of the main assets for investors throughout this year. It so happens that 60% of those who were surveyed stated that business expectation in Europe continued to be the same as in 2018. If we pay attention to the main European cities, Madrid comes in fourth place (it has moved up one level with regard to 2018), and it is only overtaken by Lisbon, Berlin and Dublin. According to the European Real Estate Market Trends in 2019 report, Madrid is one of the most sought-after cities in Europe, due to the fact that it shows a good economic forecast as well as a rent increase. We can state that the great demand to purchase or to rent real estate in Madrid is being reflected in Europe.

CONCERN REGARDING BREXIT

Regarding Brexit, there is a moderate concern. However, some European investors are very worried about Brexit. Whereas, real estate investors throughout the world are much more preoccupied about other matters, such as trade relations between the United States and China. In any case, the majority of those who were surveyed, believed that Brexit will have direct consequences on the economy. Furthermore, 83% of them stated that due to Brexit, growth expectations between the United Kingdom and EU Member States, will be very different. In the blog of Estate One, we recently wrote an article about the weakening of British real estate because of Brexit.