The Russian capital has overtaken London as the most attractive European city for real estate investment, according to an index by LaSalle Investment Management.
Moscow took the lead because of its high growth rate despite London still having a higher level of wealth. London has suffered from slowing GDP growth and exposure to the European debt crisis, while Russia has gained from high energy prices.
However, LaSalle said foreign investors are still wary of investing in Moscow because of its difficult business environment.
Munich took the third spot followed by Paris and Istanbul. The rise of the Turkish capital reflects GDP growth that hit 11% in the first quarter of the year thanks to production gains, growing consumption and a young population.
“Turkey sits alongside Russia as a sizeable emerging economy,” said Simon Marrison, European CEO at LaSalle. “[Istanbul] is quickly establishing itself as a regional financial centre, while the rest of the country is also seeing the benefits of exceptionally high growth.”
©2011 funds europe