Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

European residential sector expected to boom in the next five years

Verena Bauer • 25/04/2024

Investment in the EMEA residential sector has the potential to reach €70-85 billion per year over the next five years, according to one of the findings of the EMEA Living Sector Survey by Cushman & Wakefield (C&W). This is based on a survey of institutional investors who manage over 1.4 trillion euros in property assets worldwide.

It reflects great optimism for strong growth in the sector, driven by demographic changes, supply shortages and social megatrends. More than half of those surveyed stated that they currently have more than 20 per cent of their property portfolio invested in the residential sector. Almost 80 per cent expect their investments to increase over the next five years. 

This development is also reflected in the investment volumes for 2023. 22 per cent of all property investments in Europe were made in the residential sector. In 2007, this figure was just 6 per cent. 

The markets in Germany and the UK are expected to benefit the most from the recovery in residential investment volumes. Apart from these two key markets, the geographical focus is strongly on core European countries such as Spain and France, with Ireland and the Nordic countries attracting additional interest.

Tina Reuter, Head of Germany at C&W, comments: ‘Our survey shows that investors are very interested in diversifying the residential sector. We therefore expect segments such as social housing, senior housing and shared housing to grow in the medium term, particularly in Germany.’

‘We are pleased about the optimism of investors. It confirms that the residential sector is firmly established as a key component of a balanced commercial property portfolio and that investor interest in the stability and demographically-driven growth it offers continues to grow,’ adds Tom McCabe, Head of EMEA Living Research & Insight at C&W.

‘Investment in the residential sector tends to focus on rental, retirement and student accommodation. Indeed, this is where institutional investor interest remains strongest,’ says Jan-Bastian Knod, Head of Residential Investment Germany, C&W, referring to the German market.
The survey also revealed that almost 90 per cent of investors see demographics as the main driver of demand growth. Other findings include: Almost 80 per cent of respondents consider sustainability to be a key portfolio objective. A further 70 per cent stated that they are willing to pay a premium for residential properties with strong sustainability features. Just over half of those surveyed stated that they expect capital values to stabilise by the end of the second quarter of this year.

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Germany Flex Office Market  - Cushman & Wakefield
Flex Office Market Germany shows resilience

The German flex office market remains attractive, despite a structural change in demand in which office users are increasingly favouring smaller spaces with higher quality.

Verena Bauer • 06/06/2024

Press Release Cushman & Wakefield
Strategic repositioning of the German business

Cushman & Wakefield is setting the course for even greater client focus in Germany with a new organisational model.

Verena Bauer • 28/05/2024

Highrise Frankfurt Study Cushman & Wakefield
Highrise study Frankfurt

Frankfurt’s high-rise office buildings provide a total of 1.77 million sq m of rental space, a further five properties with heights of over 45 metres will be completed by 2028 according to the “Highrise Study Frankfurt” analysis by Cushman & Wakefield.

Verena Bauer • 24/05/2024

INSIGHTS

Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
20/03/2024
Cushman & Wakefield Asset Optimisation Guides
Insights

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics
Insights

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS