European countries remain among the most stable, mature and attractive investment markets for investors with eight of the top 20 ranked markets in Europe, according to Arcadis. Nevertheless, the limited economic growth in continental Europe is a possible risk for the region’s prosperity and attractiveness.
According to Arcadis’ research, strong deal flows and years of experience with PPP (Public Private Partnership) offer investors much needed certainty in several European markets. Among the most attractive European markets are the UK, Germany, Italy and the Netherlands. Belgium, France and Spain remain stagnant. Eastern European countries such as Poland and Romania benefit from a continuing upwards trends in terms of investment attractiveness. The Belgian figures do not yet reflect possible negative effects of the March Brussels attacks.
The limited economic growth in Continental Europe has prompted the European Commission to launch a €315bn initiative, the so-called Juncker plan, providing a platform for PPP deals across the European Union. Promotors are currently being invited to submit projects under the sub-sectors of energy, transportation, digital economy, social infrastructure and environment. Investors are keen to invest in the mature and stable European markets, but a lack of pipeline and well-structured bankable projects has limited the amount of opportunities. This means that the success of this plan is partly dependent on the question whether a number of European governments will be able to overcome their reluctance of Public Private Partnerships.
Don Hardy, global leader - business advisory infrastructure, Arcadis, said: “In Europe there is a lot of social and public need, and many project ideas and plans. A substantial amount of private sector money is available but the basic problem is that there aren’t enough investable and bankable projects. There has to be a way of bridging that gap and finding solutions where we can improve investment readiness.“
On a global scale, Singapore is the most attractive investment market for infrastructure investment, followed by Qatar, the UAE and Canada. Latin-America is losing momentum. Due to the low oil prices, Middle East countries – with Qatar as a notable exception - are starting to suffer from their reduced oil income.
