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Munich is the most attractive European city for real estate investment judging by the level of demand, surpassing London and Paris, due to its diversified economy and growing population, according to a report by LaSalle Investment Management.
“This report is slightly confusing in that it only focuses on the demand side,” Robin Goodchild from Lasalle Investment Management told CNBC. “The pricing side is subtly different, and the pricing has actually been more extreme here in London and actually in Paris.”
London slipped to 8th in the city ranking, but Goodchild said it will “rise back up.”
“Munich and Paris have been neck and neck for the last few years,” he said “and they’re going to stay strong.” He said Paris will stay in the top three and Munich in the top five and “may actually challenge because it is the German city that is doing the best.”
Another surprise was in Oslo, which saw a jump to fourth place from its previous position at ninth. This is because Oslo is benefiting from the massive oil wealth and Norway has a strong economy “so that boosts it giving it an underlying strength,” according to Goodchild.
He said although it doesn’t grow terribly fast, “when the cities that do have growth are not going so fast Oslo and the Swiss cities rise up.”
- For the full interview watch the video above
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