Multi-family homes, student housing top global real estate investments
Investors looking at residential property are increasingly looking at alternative real estate such as multi-family housing, retirement housing and student markets, according to new research.
Global student housing investment volumes in particular have risen 87 per cent in the last five years, says the study from international real estate firm Savills.
According to Propertywire.com, the study explains that the maturity of the British and US markets, coupled with low provision yet high demand for purpose-built student accommodation, mean that southern European cities offer the strongest opportunities for new investment in the sector over the coming year.
But global need for multi-family, co-living and retirement housing offers opportunities across all jurisdictions, and are particularly under invested asset classes in the UK, it also points out.
Indeed, the provision of PBSA is highest in the UK where 27 per cent of all students can be accommodated, and lowest in southern Europe. In Italy, Europe’s fourth largest student market, the national provision rate is less than five per cent.
Analysing city by city data from StudentMarketing, an independent provider of student housing and micro living research and data, Savills has identified that provision is lowest in Rome, with a student population of 220,500, but only 6,500 student beds, a provision rate of just three per cent, followed by Porto at 3.5 per cent, Florence at 3.8 per cent, Barcelona at 4.9 per cent and Madrid at 5.7 per cent.
These cities therefore offer the best immediate opportunities for investors, says Savills, as many have strong international student populations, indicating a solid supply base, and high average PBSA rents.
“Italy’s proving to be an attractive market for investors where supply is low and the existing quality of accommodation is dated,” said Marcus Roberts, director of residential capital markets for Europe at Savills.
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