European real estate investors are increasingly looking beyond London and Europe’s other gateway cities as they seek to meet their return objectives. But not every regional city is suitable for investors and returns can disappoint in the medium term if one does not factor-in local market fundamentals such as local growth trends, demographic changes and human capital. By ranking Europe’s top 100 cities based on their medium-term growth potential, LaSalle Investment Management’s European Regional Growth Index (E-REGI) can help.

The 2015 results confirm that Europe’s economy is driven by dynamic urban centres – with London and Paris once again in first and second position in the overall ranking. Mahdi Mokrane, LaSalle Investment Management’s head of research and strategy for Europe, said: “Having published this index for 16 years, we now have an unrivalled understanding of the different economic patterns in Europe’s leading cities. The index determines which real estate markets are likely to outperform, or underperform in the medium term.

Of most interest is ‘The Movers’ in the index as timing your property investment is crucial in a cyclical market. Spanish cities have seen moves at the top of the ranking with Madrid and Barcelona the strongest improving markets in 2014, now joined by Seville, Bilbao and Valencia.