European residential investment doubles in the last ten years
PATRIZIA Immobilien has launched its tenth Patrizia Insight study on the European Residential Markets. The findings show that every fifth Euro of European real estate investment is invested in the wider residential universe, an increase of more than 50 percent over the last 10 years. The study also shows that strong employment growth continues to support a positive residential market outlook with average real price growth of circa 4 percent in 2017, well above inflation. The attraction of residential universe set to grow even further due to strong demand drivers across Europe, including aging and the trend of urbanization.
Dr Marcus Cieleback, PATRIZIA’s Chief Economist and author of PATRIZIA INSIGHT, says: “Over the last decade the European residential market has undergone significant change. Today residential investments are made in a truly Pan-European context and well-known megatrends, such as aging and urbanisation, combined with the hunt for stable income streams by institutional investors, are increasing demand even further. We expect residential investments to remain high on the agenda for institutional investors. However, the ongoing strong investor interest in residential properties has resulted in a shrinking supply of institutional quality assets available for purchase. This means that the importance placed on local expertise and experience in investment strategies across the risk spectrum, including development activity, is increasingly important.”