Rise in investment into non-capital European cities

Investment into non-capital cities in Europe has risen from 36 percent at the end of 2018 to 43 percent in the first half of 2019.

In a note, Eri Mitsostergiou, director, European research at Savills, has singled out France, Spain and the United Kingdom as particular examples of a growing trend in non-capital city real estate investment.

France, whose share of regional investment has stood at an average of 16 percent in the past five years, has seen investment outside of Paris jump to 28 percent. The consultancy says a lack of stock in Paris as well as a compression of yields has meant investors are looking further afield for their returns. Yields are now at about 3 percent in the French capital’s central office markets.

Markets such as Marseille, Bordeaux and Lille have been beneficiaries of investors seeking better returns, with investment levels standing at €662 million ($731 million), €263 million ($290 million) and €255 million ($282 million) respec