Tom McCabe, Stephen Screene, Alexandra Paulin & others
Cushman & Wakefield
2024
The "EMEA Living Investor Survey 2024" is a detailed report published by Cushman & Wakefield, a prominent global commercial real estate services firm. The report, authored by a team of experts including Tom McCabe, Stephen Screene, and others, offers insights into the trends and expectations of investors in the European, Middle Eastern, and African (EMEA) living sector, based on a survey conducted in February 2024. 🌍 Growth of the Living Segment The living sector has experienced significant expansion, now accounting for approximately 20% of the European real estate market. This growth is evident in rising transaction volumes and increased allocations within real estate indices, indicating strong investor confidence in this segment. 🏢 Investor Preferences The survey highlights a robust interest in the Private Rented Sector (PRS) and student accommodation, with the UK and German markets poised to benefit the most from a resurgence in living investment volumes. These sectors are particularly attractive to investors seeking stable returns. 📈 Investment Strategies Investors are gravitating towards stabilized stock, joint ventures, and forward funding as their preferred deal structures. Such strategies are favored for their ability to mitigate risk and enhance scalability, making them appealing options in a fluctuating economic landscape. 💡 Economic Outlook Despite a projected slight downturn in the European economy for 2024, only modest reductions in interest rates are anticipated. Investors expect prime living capital values to stabilize by the second quarter of 2024, which may further bolster confidence in the living sector. 🌱 Sustainability Focus Sustainability has emerged as a critical consideration for investors in the living sector. Nearly 80% of respondents view sustainability as a key objective, with many willing to pay a premium for properties that demonstrate strong sustainability credentials. This trend reflects an increasing demand for eco-friendly housing solutions. 💰 Future Allocations A significant majority of investors—almost 80%—plan to increase their investments in the living sector over the next five years, potentially leading to annual inflows of €70-85 billion across the EMEA region. This anticipated growth underscores the sector’s potential and relevance in addressing housing needs. In conclusion, the "EMEA Living Investor Survey 2024" sheds light on investor sentiment and strategic priorities within the living sector, capturing both challenges and opportunities as the market continues to evolve, particularly in the context of sustainability and innovative housing solutions.
Cushman & Wakefield
The "EMEA Living Investor Survey 2024" is a comprehensive report published by Cushman & Wakefield, a leading global commercial real estate services firm. The report provides insights into the trends and expectations of investors in the European, Middle Eastern, and African (EMEA) living sector. It was authored by a team of experts including Tom McCabe, Stephen Screene, Alexandra Paulin, Joep van de Vorstenbosch, Millie Harper, Mark Clegg, Geoff McCabe, Patrick Hogan, Andrew Smith, Jan Bastian Knod, and Luca D’Anzieri. The survey was conducted in February 2024.
Key Findings
- Growth of the Living Segment: The living segment has rapidly expanded to constitute approximately 20% of the European real estate market. This growth is reflected in both rising transaction volumes and increased allocations in real estate indexes.
- Investor Preferences: There is strong investor interest in the Private Rented Sector (PRS) and student accommodation. The UK and German markets are expected to benefit most from a recovery in living investment volumes.
- Investment Strategies: Stabilised stock, joint ventures, and forward funding are the preferred deal structures among investors. These strategies are favored due to their potential for risk mitigation and scalability.
- Economic Outlook: Despite a slightly weaker European economy anticipated in 2024, only modest reductions in interest rates are expected. Investors foresee prime living capital values bottoming out by Q2 2024.
- Sustainability: Sustainability is increasingly important for investors in the living sector. Nearly 80% of surveyed investors consider sustainability a key objective for their portfolios, with many willing to pay a premium for assets with strong sustainability credentials.
- Future Allocations: A significant majority of investors (almost 80%) plan to increase their investments in the living sector over the next five years. This could result in annual inflows of €70-85 billion into the sector across the EMEA region.
Context
The survey reflects a cautious optimism among investors as they navigate economic uncertainties while recognizing the growth potential within the living sector. The findings suggest that while traditional segments like PRS and student accommodation remain popular, there is growing interest in social/affordable housing and co-living spaces. The report indicates that improved pricing alignment and a favorable interest rate outlook may drive recovery in investment volumes starting in 2024.
Overall, the "EMEA Living Investor Survey 2024" provides valuable insights into investor sentiment and strategic priorities within the living sector, highlighting both challenges and opportunities as the market evolves.