Introducing Europe’s Cities in 2022
Oliver Banks Associate, International Residential Development
The insatiable desire to travel again after two years of lockdown restrictions is already proving a boon for Europe’s major cities and their real estate markets. The National Travel and Tourism Office recently revealed that US air travel to and from Europe in March 2022 had surged by a massive 862% compared with the same month last year. Paris was the most popular mainland European hub to serve US destinations, and ranked fifth globally. Encouragingly, flights within the EU are also experiencing a revival, with a 156% year-on-year increase in March 2022. While this remains below pre-pandemic levels, three-quarters of Europeans are planning to travel before September, with more than half (56%) looking to visit another EU country. As we return to cities for pleasure, we’re reminded why we enjoy living in them.
Introducing Europe’s Cities in 2022
Oliver Banks Associate, International Residential Development
The insatiable desire to travel again after two years of lockdown restrictions is already proving a boon for Europe’s major cities and their real estate markets. The National Travel and Tourism Office recently revealed that US air travel to and from Europe in March 2022 had surged by a massive 862% compared with the same month last year. Paris was the most popular mainland European hub to serve US destinations, and ranked fifth globally. Encouragingly, flights within the EU are also experiencing a revival, with a 156% year-on-year increase in March 2022. While this remains below pre-pandemic levels, three-quarters of Europeans are planning to travel before September, with more than half (56%) looking to visit another EU country. As we return to cities for pleasure, we’re reminded why we enjoy living in them.
Real travel may be restricted at the moment – but we hope this virtual whistle-stop tour is both informative and offers a flavour of just what is waiting to be discovered.
Oliver Banks
Revitalised appeal The pessimistic predictions about city living in the wake of the Covid-19 pandemic appear to have been short-lived. Our Prime International Residential Index, which tracks residential prices in the 100 best-performing locations globally, showed property values in cities rising by an average of 8.4%. Amsterdam was mainland Europe’s best-performing city, with prices up 15.2%. While suburbs and resorts still outperformed their urban rivals, the gap has undoubtedly narrowed since the most dramatic throes of the pandemic, when the race for space was truly on. And although the ‘where’ and ‘how’ people work has fundamentally changed in many industries, the office still has a vital function for many firms, which provides support for urban centres.
Walking the walk Health and wellbeing has always been important, but in the wake of the pandemic looking after ourselves has become an even greater priority. Many desire easy access to outside space, and Europe’s cities offer this in abundance just a short distance from people’s homes. Our Walkability Study also found that people want to spend more time outdoors and less time in a car or commuting on public transport, so living near their place of work has become more appealing.
Embracing sustainability Awareness about the plight of climate change has also been catapulted to the top of the agenda due to the pandemic, and many European cities are taking significant steps to reduce their carbon footprint. A total of seven European cities ranked in the top 10 for the environment category in the Global Power City Index overseen by the Institute for Urban Strategies, with many prioritising schemes to increase renewable energy, improve air quality and develop urban green spaces. At a more individual level, many people who felt isolated during their respective lockdowns are now keen to rekindle their former lives by embracing culture, visiting restaurants, and pursuing their favourite activities. This resurrected love of the city is likely to be beneficial for prime property markets across Europe, particularly in the continent’s safe-haven locations whose prestige and allure has overridden Covid-related worries about urban living.
Amplified wealth Rebounding stock markets and elevated savings rates during the pandemic helped propel the wealth of ultra- and high-net-worth individuals. In the US alone, household wealth amassed during Covid-19 totalled $28 trillion, according to Oxford Economics. As such, it is likely that the increasingly prevalent trend of co-primary residences will continue, and this should benefit Europe. Many buyers may still prioritise space, seeking out apartments with roof terraces or outdoor space if they can’t find houses, meaning that the outperformance of prime properties over apartments in several European cities in 2021 could be repeated in 2022.
Discover Europe’s prime hotspots Our interactive map highlights 12 cities in Europe that we believe will be investment hotspots due to their enticing culture, lifestyle and economic prospects. Even with the shackles of travel restrictions removed, not everyone will be able to visit all of them, so our virtual tour helps to provide an informed snapshot of what it’s like to live in these great locations.