The 2024 Olympic Games ensured all eyes turned to Paris, but in the meantime, London quietly stole the City of Light’s crown as the most attractive European city for residential investors.
In a remarkable shift, London has overtaken Paris to become the most attractive European city for residential investors, according to PATRIZIA's 2024 European Living Cities Index. This comprehensive ranking, which evaluates 142 cities across the continent, highlights the dynamic nature of urban investment landscapes across Europe.
Dominance of the DACH and Nordic Regions
The 2024 rankings display strong performances from cities in the DACH (Germany, Austria, and Switzerland) and Nordic regions. While London and Paris again top the list, cities like Munich, Vienna, and Stockholm also feature prominently, reflecting their robust investment appeal. Berlin has been nudged down to fourth place by Zurich.
The residential sector remains a vital asset class for institutional investors seeking portfolio diversification and resilient income streams. Urbanisation megatrends, characterised by increasing population density and evolving living preferences, underscore the importance of strategic investments in the living sector. Cities that adapt to these trends by enhancing infrastructure, connectivity and liveability are becoming prime targets for investment.
Insights from PATRIZIA’s European Living Cities Index
The biannual European Living Cities Index leverages PATRIZIA’s in-house research and data intelligence capabilities to analyse cities across the continent. The Index provides a detailed assessment of each city's attractiveness and liquidity, enabling institutional investors to develop diversified European living portfolios.