See beyond the city with Sebastian… and our European Living City Index for 2020
Choose to invest with PATRIZIA and you’ll choose to invest in a robust and diversified portfolio, guided by exceptional local knowledge and 36 years of European investment experience. With 24 offices globally, over 800 employees, and more than 50 fund managers, we’re dedicated to carefully managing our €46 billion portfolio. Every solution we provide is tailored to meet the unique requirements of our investors, large or small.
We’re also committed to social responsibility. The PATRIZIA Foundation has helped over 220,000 children in need during the last 20 years, building schools, hospitals, and children’s homes worldwide, from Tanzania and Uganda to India and Nepal. We aim to conduct ourselves responsibly from an environmental and sustainability perspective, too.
All our investment practices and business plans are directly aligned with the UN Sustainable Development Goals, and we understand our role as an investment manager in reducing the carbon footprint of our asset portfolio and business operations.
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I. We manage over €10 billion in residential assets
The European residential sector continues to enjoy healthy growth. In the last decade alone, weekly investment figures have risen from €100 million to nearly €1 billion. The sector has also proven its robustness, providing greater downside protection than commercial property investment.
At PATRIZIA, we have over €10 billion in residential assets under management, and all our investments are informed by rigorous analysis. Our highly-valued PATRIZIA Living Cities Index is an industry-leading ranking of 120 cities and their market liquidity. It’s one of the tools that equips our residential fund manager, Sebastian Dietert, with extraordinary insight into which cities can deliver the most rewarding long-term returns for our investors.
II. How does the PATRIZIA Living Cities Index work?
To create the Living Cities Index, we analyse the demographic and economic aspects of cities, allowing us to leverage the current urbanisation megatrend – a general phenomenon of increasing residential transactions – with country-specific characteristics. We look at population forecast, unemployment rate, and gross domestic product (GDP). We also look at a city’s innovation capacity, including student population and patent application numbers, which can tell us how powerful these cities could be.
Once we have examined these subfactors and weighted the data accordingly, we can then determine a city’s long-term attractiveness. We do this through our third-generation approach that scans the internet and compresses unstructured data from over 100 multiple listing systems (MLS’s), compressing it into a cloud-based solution which we call Geo Big Data Analytics. The PATRIZIA Geo Big Data solution currently contains over 50 million relevant observation points, giving us incredibly granular insights. And this allows us to carefully structure the way we invest, helping investors diversify their portfolios by location and risk profile, identifying target cities and investments according to risk-return requirements.
III. What are the Living Cities Index 2020 findings?
Perhaps unsurprisingly, London, Paris, Vienna and Munich, remain the four most attractive markets in Europe. However, thanks to our market liquidity analysis, an analysis based on the number of transactions recorded in each city, we discovered that Vienna was home to the highest number of institutional investments and was the most liquid market, making it a particularly attractive city. The biggest movers, though, were Nuremberg and Bergen, which jumped 67 places and 35 places respectively to feature at 39th and 66th in the ranking.
The Index also illustrated a significant growth in the number of residential investments being made by institutional investors across Europe – mirroring the interest in residential property as a secure asset class by both insurance companies and pension funds. Ultimately, our City Index Ranking makes it easy for investors to identify high-growth target cities across Europe, and then diversify their portfolios accordingly.
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Simply contact us via the form to talk to the capital markets team and discover how you can benefit from our visionary expertise – and capitalise on Europe’s high-growth residential sector.
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For professional clients only. Subscriptions for a fund can only be made on the basis of the respective issue document in its current version.
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