The residential sector as we used to know it is changing. There are several subcategories under the broad term ‘residential real estate’ including housing/apartments, senior housing, student housing, micro-living and other emerging specialised sub-categories that may also be a fusion between residential and hospitality assets (student-hotels, coliving).
Fast urbanisation, changing demographics and socioeconomic polarisation are having an impact on people’s housing needs and their ability to fulfil them. The public sector cannot always keep up with the rising demand for housing in the largest cities in Europe and the private sector has started filling the gaps.
Investors, who may have traditionally been focusing on commercial real estate, have shifted their attention to the residential sector seeking diversification of risk and strategic investments. The attractiveness of long-term, index linked income, the benefits of multi-tenant properties, lower volatility and good fundamentals have been supporting investor demand.
Source : Savills