Lisbon has emerged as the number one late-cycle play for real estate investors. Portugal’s capital city has been identified as the top target in the annual Urban Land Institute and PwC Emerging Trends in Real Estate Europe 2019 report.

The city’s position reflects the current appetite to combine smaller newcomer locations with larger established markets, as asset allocators look to secure a mix of defensive and opportunistic investments. Lisbon jumped 10 places from last year to take the number one spot with report interviewees praising the city’s quality of life and political leadership.

German cities still dominate the report’s top 10 city list. Berlin sits in second place, followed by Frankfurt, Hamburg and Munich, ranked fifth, seventh and 10th, respectively. Despite their popularity however, many investors have expressed concern that the German A cities are clearly overpriced. Dublin (third), Madrid (fourth), Amsterdam (sixth), Helsinki (eighth),