London has risen to become the second most attractive European city for property investment and development.

The capital is pipped to the top spot in the Urban Land Institute and PwC league by Berlin.

The annual survey of a thousand of the world’s biggest property investors, lenders, developers and advisers last year ranked London fourth, after Paris, Berlin and Frankfurt.

Gareth Lewis, real estate director at PWC, said: “It’s clear that, at this time of significant uncertainty, investors continue to see Europe’s core cities as safer bets and there remains cautious optimism.”

The survey also shows Germany’s improved credentials as a safe haven during the pandemic, with Berlin, Frankfurt, Hamburg and Munich all making the top ten.

Some 41% of respondents, up from 33% last year, said that they were concerned about asset obsolescence in 2021. Nearly 50% believed that the problem would worsen over the next five years.

Data centres, logistics property and rented homes were the most favoured asset classes for income stability.