German cities like Hamburg and Munich consolidate their rankings when 645 people from the industry evaluate the real estate climate. Stockholm drops for the third year in a row down to a twelfth place. In 2007, Stockholm was ranked third in the corresponding study.

- The report shows a cautious optimism, while many participants indicate uncertainty. There is for example reluctance on the refinancing of loans during the year where the sums of hundreds of billion Euro are at stake. The industry is questioning if the banks will sell, or keep its possession as a result of the situation, says Jörgen Sigvardsson, branch manager at Real Estate PricewaterhouseCoopers.

For the seventh consecutive year, the report Emerging Trends in Real Estate Europe is presented with opinions from 645 leaders in the industry such as investors, developers, financiers and managers. The report concluded that German cities continued to be regarded as most favorable for investment and development of dwelling stocks.

For the second consecutive year, Munich and Hamburg are at the top of the list. Other top rankings are occupied by Paris and London which are perceived to be strong during troubled times.

- We note that even investors in 2010 honors large and liquid markets that they know well. Given the market situation, it is understandable that people are betting on secure cards also for the reason that it is primarily the quality of objects in the best locations that will be eligible for consideration for financing, says Jörgen Sigvardsson.

But in the case of Stockholm´s real estate market, the future is more uncertain. Three years ago, Stockholm was ranked as the third most attractive European city for property investment. Since then, the interest in the Swedish capital Stockholm has decreased considerably and is now only at the twelfth spot on the rankings.

- Stockholm has to stand back in international competition. The market, however, follows trends and is ready to return when the right investment opportunities arise. For national investors with access to capital in 2010, there are lots of opportunities, says Jörgen Sigvardsson.

Ranking of the European real estate market's potential (last year's ranking in parenthesis)
1. (1) Munich
2. (2) Hamburg
3. (7) Paris
4. (5) London
5. (17) Vienna
6. (18) Milan
7. (3) Istanbul
8. (9) Berlin
9. (20) Rome
10. (10) Frankfurt
11. (4) Zurich
12. (11) Stockholm

-Another interesting finding from the report is that environmental progress will take a bigger role in the industry when it comes to real estate development. Among other things, this is noticed in mandatory surveys in regards to energy efficiency of buildings, concludes Jörgen Sigvardsson.



                                                                                          Cecilia Helland