London City
London dropped off the top 10 list for the first time in 12 yearsGetty

Bricks and mortar have always been a prime option for investors who would prefer not to risk their money in a volatile stock market. London with its low interest rates and ever-rising value has always been a choice investment.

However, according to the Emerging Trends in Real Estate report by PwC and the Urban Land Institute the city dropped from the top ten list of places in Europe to invest in, to land at the number 15 spot. The report ranked 28 cities in total, across Europe.

The results were based on collated interviews with over 500 developers, investors and property managers across Europe who were asked to rate the cities based on investment prospects, and future of the property market, both commercial and residential.

Gareth Lewis, the director of Real Estate at PwC explained London's position, "London is the largest real estate market in Europe. Money tends to plough into it during the harder times, as people are looking for a safe bet, somewhere to keep their money, and as prices go up and yields compress, people looking for better rewards will look to secondary cities.

"And that's when you see cities like London slide out of the top 10. It's not a long-term damning of the London market by any stretch of the imagination. It's just a reflection of where we are in the cycle."

The report goes on to clarify, "Nevertheless, the liquidity and scale of the market, together with relatively robust economic performance, are still powerful arguments in its favour. Far more capital – €47 billion (£35.2bn, $50.8bn) – was deployed in London than any other European city over the year to Q3 2015."

The upside to London's ratings drop will be felt more by the other cities in UK that are soon becoming alternative property investment catchments. Birmingham for example continues to stand at sixth place on the list.

"All the creative industries are going there; it has got a multitude of different tenant types; it's dynamic; and it has got new infrastructure coming," one of the investors interviewed for the report cited. Another said, "There is a move from the traditional main driver of take up, the public sector, to IT and tech, which is driving rents. It has a young international employee base and a lower cost of living, which is driving the city forward."

Top 10 cities in Europe to invest in:

1. Berlin

2. Hamburg

3. Dublin

4. Madrid

5. Copenhagen

6. Birmingham

7. Lisbon

8. Milan

9. Amsterdam

10. Munich