Moscow is top in European property boom

Moscow and Istanbul are the hottest property markets in Europe as industry branches out of traditional capitals, according to a survey of 27 cities released today.

The Urban Land Institute and PricewaterhouseCoopers survey also rated Hamburg, Munich and Paris among the top five investment prospects.

London dropped out of the top 10 for the first time in the five years the survey has been released. “London is one of our top markets, but too expensive for new acquisitions,” the report said.

It rated Moscow first or second for “buy” recommendations for all property types, with office and retail particularly strong.

“Tighter credit conditions, higher energy prices, a reduction in euro-based exports and a cooler housing market will have an impact in the months ahead,” said a spokesman.

“But we firmly believe that most markets will weather the downturn with a soft landing, due to relatively stable property fundamentals and reasonable economic growth. Those who are patient and prudent will succeed.”

Lyon, Stockholm and Helsinki were also rated as strong “buy” markets, while Lyon, Prague, Warsaw, Stockholm and Helsinki were among the leading development markets.