Britain's plan to leave the EU has caused banks and money managers in London to look at moving parts of their business elsewhere to enable them to sell across the continent
As a major financial center and home to the European Central Bank, Frankfurt has seen considerable growth in recent years. The current population of roughly 730,000 is expected to increase to about 764,000 by 2020, according to a housing market report published in January by Deutsche Bank, and the surrounding urban area has a population of more than two million.
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
Munich has grown increasingly international and has a very high standard of living, along with the highest home prices of any large city in Germany, said Constantin Graf von Preysing, a managing director at Engel & Völkers München. During the past decade, Mr. Graf von Preysing said, “prices have almost gone up 80 percent to 100 percent.”
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Rents on prime office assets across Europe grew by 1.5% quarter on quarter in the second quarter of 2016 compared to 0.7% in the previous quarter, the strongest increase in the past five years.
Rents in Europe outpaced the Americas and Asia Pacific regions with Stockholm recording the strongest growth in region of 9.4% followed by Berlin with growth of 6.3%.
The data from real estate firm JLL also shows that Paris saw growth of 3.4% as limited new supply and more robust take-up pushed up prime rents for the fourth consecutive quarter while in Southern Europe, the momentum in the market recovery has continued in Milan with rents up 2% and in Barcelona up 3.7% and Madrid up 0.9%.
Commercial real estate investment remained strong across Europe in the second quarter of 2016 totalling €54.0 billion, up 2.5% on the previous quarter and 30.4% on the 10 year average, new research shows.
However, overall activity fell short compared to the second quarter of 2015 with the office sector having the strongest quarter, seeing an 8.3% increase on the first three months of 2016, driven by a particularly strong performance in the Nordic region.
The research from CBRE also points out that despite uncertainty in the UK caused by the European Union referendum, sentiment remained strong in other European markets and investment levels were stable year on year.
German property firms expect a boom in Frankfurt as financial businesses move activities and staff out of London in the wake of Brexit, an industry survey showed on Monday.
British people seeking to buy a property in the European Union should not be downhearted by the referendum decision that the UK should leave, according to overseas real estate experts.
Those who are looking to purchase a holiday home overseas, for example, are likely to see that owning a property in the EU will only be marginally more complex than it is currently, according to Andy Bridge, managing director of A Place in the Sun.
He pointed out that citizens of the United States, Canada, Russia and many other nationalities own properties throughout Europe, so while it may become slightly more complex for British buyers than currently, they are not going to be prevented from owning property in Europe.
Germany is competing in a global race for top talent, particularly in technology and design, as firms such as Apple and Facebook work on futuristic campuses.
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