A report conducted by Savills, the recent EME Investor Sentiment Survey, which has real estate investors with total EME assets under management exceeding £400bn, showed that multifamily and student housing are within the top five sectors targeted by investors in this period. The UK, Germany, France and Spain came out as the top European locations to invest.
The report indicated that over 33% of investors are looking to invest in student housing over the next 12 months. The increasing investor interest in the student housing sector is driven by a growing number of students attending university who rely heavily on Purpose-Built Student Accommodation (PBSA).
The survey predicts that this student number will continue to grow over the coming years, as the number of young people in Europe is forecasted to rise by more than 5.8% by 2027.
Simultaneously, a massive supply and demand imbalance is driving significant residential rental growth, causing large investor numbers to target the multifamily sector. Multifamily was revealed as the top sector favoured by investors.
Both student housing and multifamily sectors demonstrate strong rental growth and occupancy levels and counteracting the fluctuations in the current uncertain market conditions.
Despite record inflation and interest rate increases, investor sentiment remains very robust in these sectors. Kept afloat by long-term fundamental drivers, student housing and multifamily sectors have the ability to provide secure returns for investors in the UK.