Real Estate Research
European smaller cities
Punching above their weight: the attraction of smaller growth cities to real estate investors
In general, big cities in Europe enjoy faster economic and population growth than surrounding smaller cities and towns, however, we believe that there are interesting real estate opportunities in certain smaller European cities which share many of the characteristics of big cities, in particular a strong university, good transport infrastructure and an attractive quality of life.
In this paper we discuss why we think that for many investors the higher level of yields is fair compensation for lower liquidity, and that they could be a useful complement in a portfolio which is mainly invested in big cities.