According to the latest DTZ Fair Value Index, European real estate markets now offer more attractive returns to investors. The consultant has claimed that the number of "hot markets" has increased from 20 to 23 during the third quarter of 2010
The number of "cold markets" has fallen from 21 to 14. Six markets have been upgraded from warm to hot - Warsaw retail, Manchester industrial, Warsaw offices, London West End offices, Madrid offices and Copenhagen industrial, DTZ explains.
"At current pricing levels our latest index shows that there are, on balance, better investment prospects in Europe than in the second quarter of 2010. The increase in opportunities is evident in several countries including the UK, Germany, France and across the Nordic region," said Magali Marton, DTZ head of CEMEA Research.
However, the European Fair Value Index scores remain lower than in the US and the Asia Pacific region where investors are benefitting from higher growth prospects over a five year period.