As a result of the forthcoming 2024 Olympics in Paris and the planned redevelopment of the city, Paris is ranked high in investment attractiveness for 2020. The 26-billion-euro infrastructure project involves the restructuring of the city's transit system, which will act as a catalyst for the development of new city districts.
Berlin and Frankfurt took second and third place in the rankings, respectively, and London came in fourth. While many investors remain cautious and have suspended operations after lasting uncertainties over Brexit, London still remains a preferred target for long-term investments.
Logistics real estate still holds high rank among real estate segments prime for investment due to growth in online commerce. Moreover, last-mile warehouses are in constant deficit due to competition with other segments such as residential real estate, which leads to stability for financial investments.
Six out of ten of the most promising segments for 2020 are related to residential real estate. It's the first time that affordable housing has entered the top ten of the most influential areas of urban economy. About 61% of real estate specialists are anxious over the affordable housing market, and half of them believe that this issue will be aggravated over the next ten years.
But the residential sector also faces high political risk. Many specialists refer to upcoming rent controls in Berlin as an example of how political pressure may affect a project's rate of return. Barcelona and London are also developing similar regulations. ULI researchers consider modular construction, financial incentives and public private partnerships to be valid methods for creating affordable housing.