EUROPEAN MULTIFAMILY INVESTMENT FORECAST TO RISE BY 27% OVER NEXT 5 YEARS
Multifamily investment in Europe has undergone a ten-fold increase in the last decade, with the sector attracting a record high of €50bn of investment in 2018. In the new EMEA Multifamily ViewPoint, The Rise of Investment in Multifamily Housing, CBRE reports that the outlook for the multifamily residential sector is positive, and forecasts related investment volumes will rise by 27% over the next five years, to c€64bn. In the US, the most mature market globally, investment into the multifamily sector grew from $22bn in 2001, to $175bn in 2018, making it the dominant real estate investment sector. CBRE anticipates Europe will follow a similar trajectory.
CBRE reports on the growing investor interest in the sector, and how multifamily investments are performing against other sectors. The report also outlines the key factors driving growth in this multibillion-Euro sector, with social and demographic changes fuelling the sustained demand for rental homes across Europe.
Jennet Siebrits, CBRE Head of Residential Research, UK, comments: “Our research into multifamily in Europe highlights how an increasing urban populous, social shifts and affordability constraints will lead to continued expansion of the private rental sector, ensuring sustained demand for rental homes. This, combined with a structural undersupply of new home in most markets, are positive indicators for investors.”
Thomas Westerhof, CBRE Head of Residential Investment Properties, Continental Europe, comments: “Multifamily residential assets in Europe are highly sought-after by investors and offer a number of inherent benefits, including long-term inflation linked returns and portfolio diversification. In most European markets we looked at, these residential investments had a higher average total return over ten years than the office or retail sectors.”
To read the report: CBRE EMEA Multifamily Viewpoint: The Rise of Investment in Multifamily Housing