Analysing trends in residential markets: The tenth Insight Report
On a global scale, urbanisation is increasing and populations are ageing, often making residential properties in cities scarce. At the same time, the construction industry is struggling to keep up with demand – both residential and commercial properties are sought-after, even in former crisis countries such as Ireland and Spain. As a result, the lack of availability is a challenge for pan-European investors – but we also see it as an opportunity.
The release of the PATRIZIA Insight Report
We have just released our tenth edition of the PATRIZIA Insight on European Residential Markets, in which we discuss current trends and the changing circumstances of European residential markets. With nearly every fifth Euro invested in Europe being invested in residential markets, the appeal of residential properties is clear. Europe’s strong economy combined with the megatrends of ageing and urbanisation are adding to the attractiveness of residential investments.
Diversification within residential
While Europe’s healthy economic expansion is driving demand for residential properties for those in employment, subsectors in residential markets are also proving to be great prospects for investors. Across the world, the population is ageing, and care properties are also in high demand. Student accommodation is another popular investment area, and construction activity is growing across the board, despite rising prices.
It is unsurprising that European housing construction has been rising steadily by over 10% (yoy) in many countries over the past several years, but PATRIZIA does not see a need to be worried about a construction-led property bubble, at least in the pan-European scheme of things.
“There is a continuing need for housing as a result of urbanisation and a decrease in average household size, and statistics in our Insight Report show that current building activity is more about stabilising stock than it is about expanding it.”
Marcus Cieleback, Chief Economist, PATRIZIA Immobilien AG
Photos: Westend61, PATRIZIA Immobilien AG