Bret Wilkerson, chief executive of PPR, told the European Property Investment Conference that the appeal of American cities is that they tend to be the most economically robust, have the highest levels of liquidity and transparency and are the least risky. New York, Northern New Jersey, Chicago, Los Angeles and Washington, DC were PPR's leading cities. They were followed by London, Tokyo, Sydney, Boston and Singapore.
A comparative analysis of cities around the globe has long stumped researchers because property tends to be heavily dependent on geographical and economic differences. PPR has developed a model to do this based on the economic status, real estate performance and property risk of different cities.
Outside the US, London is the most attractive market. But its main drawback is the failure to join the European monetary union. Both London and Tokyo suffer from high market volatility, but the Japanese capital is particularly associated with high risks associated with poor transparency and low liquidity, according to PPR.
Although all the office markets in PPR's Top 10 are emerging from a downward leg in the current real estate cycle, London and New York are expected to bounce back more strongly than Tokyo, PPR added.
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