Market Trends of Europe Luxury Residential Real Estate Industry
Largest Real Estate Companies in Europe
As of April 2021, European companies were recognized as the top three real estate companies by market value in Europe. Segro placed first when these real estate companies were compared by market value as of April 2021, despite having the smallest asset value. Segro, a real estate company based in the United Kingdom, was valued at approximately USD 16.23 billion. Segro company owns commercial and industrial properties in the United Kingdom, France, the Czech Republic, Poland, Italy, the Netherlands, Belgium, Spain, and Germany. L E Lundbergfoeretagen AB of Sweden and Covivio of France were ranked second and third, respectively, with a market cap of USD 14.47 billion and USD 8.63 billion.
The European real estate market is a heavily contested investment opportunity with high-demand areas and prospects for significant investment returns. The desire for highly compensated employees to live centrally in favored areas, coupled with the scarcity of available space and high land and construction expenses, contribute to the continued growth of the European luxury residential real estate market.
Average Cost of an Apartment in Europe by City
Despite the problems caused by the pandemic, the European market has made great progress. Three factors drive the luxury real estate market in Europe. People are upgrading their existing residences, a new interest in second homes is currently driving the luxury residential market in the country, and a change of lifestyle, as some people are settling in the outskirts of the city and enjoying a better quality of life by utilizing modern technologies.
With average values of nearly EUR 15,430 (USD 16,439) per square meter, London, England's capital, was the most expensive European city to buy an apartment. This was over ten times the average price per square meter of an apartment in Riga, Latvia's capital city.
The need for high-paid professionals to be located in prime locations, with a scarcity of available space, expensive land, and construction costs, all contribute to rising rental prices. Similar to any other consumer-driven business, exorbitant rents are a major cause in many European towns. Prices will rise if supply lags behind demand. A combination of factors, including a lack of available space, expensive land and construction expenses, and the desire of highly compensated workers to live centrally in favored areas, all contribute to the continued rise in rental rates.
