ERENA Rating
The ERENA Rating is an AI-powered evaluation system that analyzes the investment appeal of European metropolises based on 16 core factors. It combines economic, social, and infrastructural indicators into a comprehensive location assessment, providing a reliable decision-making foundation for investors and urban developers.
Methodology
The evaluation follows a multi-stage analytical process:
- Data Collection
- Continuous collection of over 1,000 data points per city
- Integration of public and proprietary data sources
- Quarterly updates of foundational data
- AI-Powered Analysis
- Use of advanced machine-learning algorithms
- Automatic detection of market trends and developments
- Consideration of historical data and future projections
- Evaluation Factors and Weighting
Economic Factors (40% of total weighting)
- Housing affordability (10%)
- Rental yield potential (8%)
- Market liquidity and stability (8%)
- Financing conditions (5%)
- Income level (5%)
- Employment dynamics (4%)
Quality of Life & Social Factors (35% of total weighting)
- Social security (8%)
- Crime rate (7%)
- Educational offerings (6%)
- Cultural diversity (5%)
- Recreational opportunities (5%)
- Environmental quality (4%)
Location-Specific Characteristics (25% of total weighting)
- Infrastructure connectivity (8%)
- Tourism potential (6%)
- City image and highlights (6%)
- Development prospects (5%)
Example Application: Munich 2024
Munich achieves a rating of 85/100 points in the current ERENA assessment:
Strengths:
- Above-average economic strength
- High quality of life
- Excellent educational infrastructure
- Strong international image
Challenges:
- High real estate prices
- Limited land availability
- Rising cost of living
Practical Application
The rating serves as:
- A decision-making tool for real estate investors
- A benchmark for urban development
- A guide for location-based decisions
- A foundation for neighborhood analyses
Our systematic evaluation methodology enables a well-founded assessment of urban investment appeal and future viability. Through continuous data updates and AI-driven analysis, the ratings remain current and market-relevant.
