Investors homing in on Europe’s secondary locations

Financial centers in Europe’s secondary locations are increasingly catching the eye of investors, according to new research by Savills.

The report saw cities such as Prague, Warsaw, Stockholm, Berlin, Dublin, Athens and Milan with higher investment activity in the first half of the year.

“Despite unprecedented global liquidity driving demand for real estate in Europe, limited availability of quality product coupled with investors holding onto assets for longer is restricting activity,” said Marcus Lemli, head of investment for Europe, Savills. “This has meant investors have begun turning their attention to these secondary markets in which yields are more attractive. This is a trend we expect to see continue as we push on into the second half of the year.”

While prime office yields have stabilized in more than half of the markets (58 percent), they are still 4 percent lower in almost all markets, with the exception of Lisbon, Warsaw, Manchester, Athens