Generali Real Estate ǀ Residential Markets in Europe – Growing appetite for the asset class

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In this article, the experts from Generali Real Estate discuss growing appetite for Residential Markets in Europe.

Residential Markets in Europe - Growing appetite for the asset class

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Is work from home the new normal?

Residential real estate is by far the most widespread destination of use in the global real estate universe and still very fragmented as less than 10% is owned by institutional investors. For a long time, however, the asset class has attracted limited capital as investors preferred a dominant allocation in commercial real estate.

Historical data (share of own ownership by institutional investors), complexity and wide variety of legislative and fiscal environments at national and local level (often tenant friendly) partly explain this under-representation in institutional portfolios.

From an operational stand-point residential is characterized by greater complexity of the investment approach (analysis and understanding of the dynamics of multiple micro markets) and a wide set of recurring asset management activities. The recent success of the residential asset class can be summarized as follows:

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