The expectations of real estate investors with regard to European residential real estate are high. A study by Savills and Savills IM shows that 42.6 percent of respondents expect a significant increase in the proportion of residential real estate in their portfolio by 2025. The study is based on the responses of around 70 investors who together manage more than one trillion euros. Residential real estate currently accounts for less than 25 percent of the portfolios of more than half of those surveyed (63.2 percent). However, almost 49% of those surveyed expect this figure to rise by 2025. In total, they expect their residential real estate assets to grow by 82.4 billion euros over the next three years.
Investors are not only focusing on traditional apartment buildings. Other sectors such as student housing, co-living and senior residences are also increasingly coming into focus. 65% of respondents stated that they were already investing in student residences. 38 percent are investing in co-living and senior residences. Apartment buildings and student residences remain at the top of the list of investment targets for the next three years. However, co-living is also gaining in popularity. For example, 51% of investors want to invest in this sector by 2025 - but mostly less than 100 million euros. In general, it can be said that energy-efficient buildings are highly relevant for 77% of investors and climate-neutral buildings for 63% of investors.
Attractive supply-demand ratios, demographic changes and capital appreciation are some of the main reasons for investment plans in the European residential sector. "We continue to see a great deal of interest from investors in residential real estate. The decline in new residential construction will ensure a rental market for the foreseeable future, particularly in major cities. Residential property buyers can therefore expect a negligible vacancy risk and rising rents. The focus is particularly on high-quality properties without refurbishment risk," says Marco Högl, Head of Residential Capital Markets at Savills Germany.
Source and further information: savills.de
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