Europe remains #1 destination for investors seeking cross-border diversification in a continued challenging market environment

According to PATRIZIA’s Residential Market Report 2023, Europe is still the top global destination for diversifying through cross-border investment

PATRIZIA, a leading partner for global real assets, has released the key trends from its Residential Market Report 2023/24. While global transactions in the living sector were down 52% year-on-year, robust cross-border investment activity has ensured the residential sector remains an attractive asset class for institutional investors seeking portfolio diversification and stable income.  

Robust fundamentals underpin a challenging European market

Europe remains the number one destination for cross-border capital flows into residential assets, accounting for c.70% of global cross-border transactions on a rolling annual basis. Around 45% of the capital came from investors in the Americas, while just under 40% came from European investors and c.15% from investors in APAC. The United Kingdom, Germany, the Nordics and Spain are the preferred destinations within Europe.

Multifamily or build-to-rent (BTR) remains dominant in Europe, with the sector accounting for more than 60% of total institutional investment volumes in the living sector. However, living alternatives, such as student, have increased their share of investment volumes thanks to more robust transaction activity over the last 12 months due to its counter-cyclical nature.

You can now read the full press release at the link below