Top Five major urban development projects in Europe
In the era of hipsterism, the unpolished charm of Europe's
In the context of general eurozone real estate market recovery, Europe's biggest cities are enjoying heightened investments from overseas, but investors must battle with high demand and dense development in urban areas. Construction opportunities are often limited, especially in city centres and most developments sell out before completion. In order to avoid spiking property pressure, investors with
Key attraction points
- underdeveloped districts (
ex-ports, power stations and railways)
- high demand for land and property
- high occupancy rates and rental market pressure
- liquid asset and yield growth
London, Paris, Hamburg, Copenhagen and Berlin are some of Europe's leading cities and have the top upcoming districts to watch.
London (#1) and Paris (#4) both rank in the top six cities for attractive investments according to JLL, a global investment management company, — but new real estate markets are also developing. Berlin (#1), Hamburg (#4) and Copenhagen (#7) are in the top ten European cities for property investment prospects according to PwC, one of the world's most prestigious accounting firms. At the same time, Berlin and Hamburg are among Germany's «Big Seven» cities which have attracted soaring commercial investments this year. Experts widely concur that the popularity of these five cities lies in the positive climate for business and property investments.
Battersea, London, the UK
Value: €11.4 billion
Built in the 1930s, the Battersea power station is located on the southern bank of Thames in the inner city Nine Elms district.
Renovation work on the decommissioned
Projected costs are estimated at €11.4 billion (£8 billion) with a portfolio of major investors including Malaysian investment funds and construction companies S P Setia Bernard, Sime Darby Property and the Employees Provident Fund.
Nordhavnen, Copenhagen, Denmark
Nordhavnen is in the harbour of Copenhagen where the cargo seaport was located until recently. Work
The Copenhagen UN House has already been built and the total planned residential area will extend over 165,000 sq m while commercial property will reach 140,000 sq m. This new coastal district of Denmark’s capital will create accommodation and workspace for 40,000 people.
The Nordhavnen project is
Les Groues, Paris, France
Paris is a densely developed city with little land left for new projects — except for Les Groues, just
The project is managed by the EPADESA, a state fund, and should create some 4,500 new homes. Les Groues should attract 10,000 new inhabitants and add just as many workplaces. The area will also get a new metro station by the same name. As the project has just been approved, the value is not yet known as authorities engage with local actors and construction companies.
EuropaCity, Berlin, Germany
Cologne firm ASTOC Architects is in charge of designing the residential property. Existing galleries and museums will be located on the new
HafenCity, Hamburg, Germany
Value: €10.9 billion
Hafen is a part of Hamburg’s central Mitte borough, which is spread over several small islands on the mouth of Elbe. In 1997, city authorities decided to transform this
Over the next ten years, several thousand residential units and office buildings accommodating 14,000 new inhabitants and 45,000 workplaces will be built over 157 hectares in Hafen.
The renovated docks will have promenades spreading over 10.5 km, adding to the current 28 hectares of parks, squares and pedestrian zones in the area. So far, 57 projects have been completed including the
The project is managed by HafenCity Hamburg GmbH who raised €8.5 billion of the total project fund (€10.9 billion) from private investors and another €2.5 billion from the government (including the land sale revenue).
Large-scalereconstruction projects that transform whole districts are unusual for real estate markets and subject to multi-level arrangements between authorities, investors and contractors. But even more importantly, they are subject to meticulous investment potential calculations and, therefore, the very fact that the reconstruction has begun is a positive signal to investors. Another important feature of projects of this scale is that the new residents not only buy property, they also occupy the workplaces created and use the local retail services as well as leisure facilities. In other words, these new districts develop their own micromarket with new supply and demand.
Ivan Chepizhko, Tranio