London Leads Europe Real Estate Investment Rankings
PwC and ULI's Emerging Trends report ranks London first among European cities for real estate investment, ahead of Madrid and Paris.
Updated on Nov. 10, 2026 in Commercial
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PwC and the Urban Land Institute released the Emerging Trends in Real Estate report, which finds London has topped Europe's city investment rankings since 2022. The report, based on a survey and interviews with 1,498 senior property professionals, also shows softer expectations for business profitability in 2027.
Why it matters
The findings signal that investors continue to favor London despite uncertainty from interest rates, construction costs and geopolitical tensions. Softer profitability expectations suggest the recovery in European real estate is expected to be uneven and slower than previously anticipated.
The report is a survey and interview study of 1,498 senior property professionals, with 45% expecting profitability to rise in 2027 versus 50% a year earlier. Interest rate movements (55%) and construction costs (58%) rank as the leading concerns, while the report does not quantify how these pressures will affect specific European cities.
The players
PwC
PricewaterhouseCoopers is a multinational professional services network that co-produced the Emerging Trends in Real Estate report.
Urban Land Institute
The Urban Land Institute is a nonprofit research and education organization focused on land use and real estate, co-producing the Emerging Trends report.
The details
The report says London has topped European city investment rankings since 2022, ahead of Madrid and Paris. Respondents named data centres as the top investment prospect and new energy infrastructure second, and three quarters believe smart buildings and digital capabilities give a major competitive advantage.
Timeline
2022: London first topped the European city investment rankings.
2027: Profitability expectations and key concerns were measured for the year.
Next decade: Affordability and supply are expected to be Europe's biggest real estate challenge.
Market Landscape
London has held the top spot in the Emerging Trends European city rankings since 2022, ahead of Madrid and Paris. The softer 2027 profitability outlook, down from 50% to 45% of respondents, reflects the cost and interest-rate pressures the same survey series has tracked across recent editions.
Investors and property professionals face higher construction costs and interest-rate uncertainty, which can affect project financing and pricing decisions. Commercial property buyers and tenants should watch for shifts in market activity as profitability expectations soften.
The takeaway
Data centres and energy infrastructure are seen as the strongest investment prospects, while housing affordability remains a long-term concern for Europe. Commercial investors should weigh construction cost and interest-rate exposure when assessing new projects.
Further reading
Explore more on Commercial real estate trends across European markets.
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