Residential property has become a hot commodity in certain markets and countries for both individuals and institutions. I am going to focus on institutional-owned residential — the multifamily or apartment sector, also known as the private rented sector, or PRS, in the United Kingdom.
There are a number of demographic trends driving institutional interest in residential complexes these days. Among them are smaller families, decreased desire for homeownership, growth of contract work and less stable career routes. And in the current low interest rate and low economic growth environment, the high cost of housing and corresponding high deposit amounts put ownership out of reach for many.
In Europe, the most attractive residential property market is Germany for a variety of reasons as cited in Impressive imperfection: European residential property by John Danes, head of continental property research at Aberdeen Asset Management.
Germany has a very large market. The privately owned residential market in Germany is larger than all the other E.U. markets put together. Plus, about half of Germany’s population lives in buildings owned by private-sector landlords, and on average only 25 percent of household income is spent on rent versus the European average of around 31 percent.
The Aberdeen report covers some of the fundamental drivers, challenges and opportunities that European residential property offers investors, and it is a good backdrop to start discussions at the next VIP – Europe event, which takes place of February 23-25, 2016, at The Grand Hotel Eastbourne in East Sussex, United Kingdom.
At VIP – Europe, we will explore the world of European residential real estate in-depth. During the Residential Real Estate session, we are going to examine which countries have investable markets, and the profile of each market in terms of growth and risks. We will also ask, what countries could change to a more private market model in future, and why?
Andrew Allen, head of global property research and strategy at Aberdeen Asset Management, will moderate the session. The panel comprises a diverse group that includes Michiel Dubois, managing director – residential real estate at Bouwfonds REIM; Antonio Marin-Bataller, investment executive – residential at PATRIZIA U.K. Ltd.; and Xavier Jongen, investment executive – residential at Catella Real Estate.
To see what else we have planned and to save your spot, please click here.
Looking forward to seeing you in Eastbourne.
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John Hunt is conference program manager at Institutional Real Estate, Inc.
