European Living Investor Survey 2024

The "EMEA Living Investor Survey 2024" is a detailed report published by Cushman & Wakefield, a prominent global commercial real estate services firm known for its expertise in market analysis and investment strategies. This survey, conducted in February 2024, offers valuable insights into the trends and expectations of investors operating within the living sector across Europe, the Middle East, and Africa (EMEA). Key authors of the report include experts such as Tom McCabe, Stephen Screene, and several others, who collectively provide a robust analysis of the living market.

The report highlights a significant expansion of the living segment, which now makes up approximately 20% of the European real estate market. This growth has been evidenced by rising transaction volumes and increased allocations in real estate indices. The survey indicates that the living sector's appeal has gained momentum, reflecting a shift in investor focus toward residential opportunities, particularly amid changing demographic trends and housing needs.

Cushman & Wakefield’s findings reveal robust investor interest in the Private Rented Sector (PRS) and student accommodation, with the UK and German markets poised to benefit the most from a recovery in living investment volumes. This interest underscores the significance of sustainable housing solutions that meet the needs of diverse populations, including students and young professionals seeking rental options.

The survey outlines that investors prefer deal structures such as stabilised stock, joint ventures, and forward funding. These strategies are favored for their potential to mitigate risks and provide scalable investment opportunities. As sustainability becomes a critical factor, these investment approaches are increasingly aligned with environmentally responsible practices, enabling investors to integrate sustainability into their portfolios.

Despite a forecast of a slightly weaker European economy in 2024, the report anticipates only modest reductions in interest rates. Investors expect that prime living capital values will bottom out by the second quarter of 2024, suggesting a stabilization in the market that could encourage further investment.

The importance of sustainability is a major theme in the survey. Nearly 80% of surveyed investors regard sustainability as a key objective for their portfolios, with many indicating a willingness to pay a premium for assets that boast strong sustainability credentials. This trend reflects a growing recognition of the need for environmentally friendly housing solutions that can contribute to long-term value creation.

The report reveals that almost 80% of investors plan to increase their investments in the living sector over the next five years. This projected growth could lead to annual inflows of €70-85 billion into the sector throughout the EMEA region. Such figures highlight the living sector’s potential as a sustainable investment avenue that aligns with broader economic and environmental goals.

In summary, the "EMEA Living Investor Survey 2024" provides insightful analysis into investor sentiment and strategic priorities within the living sector. It emphasizes the challenges and opportunities that exist as the market continues to evolve. By focusing on sustainable housing solutions, the report showcases a commitment to addressing the pressing needs of modern society while fostering a more resilient and responsible real estate landscape.