According to a survey conducted by Savills Investment Management and international real estate advisor Savills* involving real estate investors with total assets under management (AuM) exceeding €1trn+, almost half (42.6%) are predicting the proportion of their AuMs allocated to the European living sector to increase significantly by 2025.
The majority (63.2%) of respondents currently have less than 25% of their AuM allocated to the living sector but 48.5% expect this to increase to up to 50% by 2025.
In terms of sectors and markets, the highest priority are:
- Housing in the UK and Ireland
- Student accommodation in the UK and Europe
- Pan-European senior living
Richard Valentine-Selsey, Head of European Living Research & Consultancy at Savills, says: “For those investing, or wanting to invest more, in the living sectors, favourable demand/supply dynamics, ESG, demographic changes, capital appreciation and long-term stable income are the five most important factors.”
Adam Alari, Head of Living Research & Strategy, Europe, Savills Investment Management, says: “Over the next few years, respondents to our survey expect to continue deploying significant capital into multifamily as well as into single-family.”
Marcus Roberts, Head of Europe - Savills Operational Capital Markets, says: “The living sector has proven to be extremely resilient in a time of exceptional global upheaval.
“Given the amount of capital chasing the sector and the limited amount of high quality stock available, we expect competition for the best assets in the best locations to remain high.”
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*The survey was run between 24 January 2023 and 10 February 2023 and involved 68 investors.
To read the full report, please visit:
https://www.savills.co.uk/research_articles/229130/345964-0
For further information, please visit:
https://www.savills.co.uk/services/investment/operational-capital-markets.aspx