Savills recent EME Investor Sentiment Survey, which represents real estate investors with total EME assets under management exceeding €500bn, revealed that European multifamily and student housing are amongst the top five sectors investors are targeting. In terms of countries, Germany, France, the Netherlands, the UK and Spain came out as the top five European locations of interest.
Survey results identified that over 33% of investors are ‘very likely’ to invest in student housing over the next 12 months. According to Savills 2022 European Student Housing Spotlight, rising investor interest in the student housing sector is being driven by a growing total number of students attending university, as well as international students, who heavily rely on Purpose-Built Student Accommodation (PBSA).
Savills research predicts that this growth will continue over the coming years, as the number of young people in Europe (15-19 year-olds) is forecast to rise by more than 5.8% by 2027.
At the same time, a significant supply and demand imbalance is driving strong residential rental growth, causing large numbers of investors to target the multifamily sector. Multifamily came out as the top sector in terms of appetite to take on development, with over 80% of respondents stating that they would develop multifamily speculatively.
The European multifamily sector continues to see extremely positive investor sentiment, demonstrating strong rental growth and occupancy levels and proving its countercyclical credentials through the current uncertain market conditions.
Marcus Roberts, Head of Europe, Operational Capital Markets (OCM)
Despite record inflation and interest rate increases, investor sentiment remains robust in the multifamily and student housing sectors. Buoyed by long-term structural drivers, these sectors have the ability to provide secure returns for investors across the UK and Europe.
James Hanmer, Head of UK PBSA Investment and Co-living, OCM