Efficient,
flexible working environments, public transport networks and ‘green’
buildings are amongst the key drivers of investment attraction in
Europe’s key cities, according to the Royal Institution of Chartered
Surveyors.
According to the globally respected organisation, banks have
virtually ceased lending for real estate investment outside core markets
such as London and Paris, often providing finance only to major
international firms. As a result, investors and occupiers are reluctant to take decisive
action and commit to a deal as they wait to see how the eurozone crisis
develops, it says in its Corporate Real Estate investment and EU Cities
report.
The report suggests that occupiers are focusing on consolidation,
cost cutting, boosting productivity and encouraging flexibility, with
demand continuing for space saving efficient working environments and
‘green’ buildings, often in lower supply in Eastern and Southern
European markets.
Occupiers’ choice is very much influenced by urban planning and
strategies adopted at local level. Public transport, connectivity to
other cities, and quality of life are cited as being important factors
in driving investment and retaining staff, with Corporate Real Estate
professionals under pressure to deliver creative solutions to suit
requirements in cities where landlords’ expectations and quality of real
estate stock are still lagging behind international standards.
‘Greater levels of dialogue are needed between occupiers, the real
estate profession and local authorities in order to deliver the urban
fabric and regulatory framework and allow sustainable growth,’ said
Thomas Jezequel, EU policy and public affairs officer at RICS and author
of the report.
