EXPO Real: European living sector ‘fundamentally solid’
The European living sector is larger and more diverse than ever and offers good investment opportunities, according to Patrizia´s European Residential Insights annual report for 2024/2025, which was presented yesterday at EXPO Real.
Purpose-built student accommodation offers one of the best opportunities in living, with co-living and senior living also attractive sub-sectors, according to the report.
The residential market has proven its resilience, has strong fundamentals underpinning it. The report makes the case that the living opportunity in Europe is broadening, making the residential sector larger for institutional investors and more diverse than it has ever been.
“There is a bright forecast to be made for the sector¨, said Marcus Cieleback, Chief Urban Economist, Patrizia (pictured right). ¨It’s fundamentally solid even if it is challenged by the evolving regulatory landscape. This just means we need to keep an eye on the rules of the game. What helps is residential’s increasing product availability for all different kinds of risk spectrums, and there are great opportunities for value-add, co-living and student housing in the sector.”
Trends in prices, valuations, yields and transaction activity clearly point to a bottoming of the market, the report says, and the situation on the credit markets is improving, with an increase in debt availability supported by signs of easing credit standards.
