Bristol leaps into top 20 table of European property investment hotspots

March 16, 2018
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Bristol has been named among Europe’s top 20 real estate investment hotspots for the first time – putting it alongside Paris, Madrid and Dublin as a magnet for international property finance.

Bristol has been placed in 12th position in this year’s European Cities of Influence index – leaping up from 42nd place in the inaugural report last year.

The report analyses the attractiveness of cities to investors based on topics such as their economic prospects, talent pool and quality of life – all areas in which Bristol continually outscores almost all other UK cities.

Now, for the first time, that track record is putting it on the European map.

Bristol has also been ranked in second place overall in the small cities sub-category of the index for cities with a population of below 2m, just behind Edinburgh.

Cities are ranked in the table based on their occupier attractiveness, availability of talent, and quality of life factors alongside economic output and productivity. London achieved top place in the report.

Bristol’s appearance in the research, compiled by global real estate advisor Colliers International, comes in the week its major development opportunities, worth a total of £10bn, were showcased to international investors at MIPIM, the world’s largest property industry gathering. 

Colliers International Bristol office head Tim Davies said: “Bristol is a city with so much going for it, and it comes as no surprise to see such an impressive performance in the European Cities of Influence index.

“Not only does Bristol benefit from a superb location that helps create a great work-life balance, but it has a thriving business quarter and is home to two highly-regarded universities. Recent figures have shown that more than 80 people a week are moving to Bristol from London.

“Bristol is the capital of one of the UK’s major regions for growth, and has been identified by the UK chief economist of Colliers International as being ‘Brexit-resistant’ because it is driven by a ‘real economy’, and enjoys a good balance of professionals in sectors including Technology Media & Telecommunications (TMT), financial, engineering and scientific.

“Bristol has been increasingly attracting attention from investors turning away from London to regional markets and non-core locations, and all the signs are that it will continue to strengthen its position as a highly-desirable destination for capital and occupiers.”

The Cities of Influence report reviews and ranks 50 European cities as destinations for investment capital, based on their occupier attractiveness, availability of talent, and quality of life factors alongside economic output and productivity.

London heads the list for the second year running with Paris, Madrid, Moscow and Birmingham making up the rest of the top five.

Report author Damian Harrington, who is also head of EMEA Research at Colliers International, added: “There is a very strong talent pool in Bristol, with a strong orientation towards higher value-add sectors, notably TMT. This continues to grow and expand, in part driven by fresh graduates emerging from the local university catchment. It is also of note that Bristol has the highest quality of life score of all the English cities in the Cities of Influence survey.

“As the local economy expands and diversifies, we expect to see higher levels of real estate investment in the year ahead.”

He added that political conditions in some cities curtailed international investment, such as in Moscow, while in others, such as Milan, concerns over the banking industry and political uncertainty were holding back both investment and occupier growth.

“For the UK and French regional cities, however, the ongoing policies of economic devolution and more labour market flexibility should see a renewed distribution of capital into these markets, product allowing,” he said.

“When compared to the German Big7, and the major Nordic capitals, UK cities in particular look significantly under-invested, given their occupier strength and growth potential.”

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