Multifamily investment in Europe should remain "strong"

Multifamily investment in Europe should remain "strong"

If the results correspond, the volume investment in this segment in Europe will maintain the same level as last year, which was the second-best year ever, according to the latest investigation from Savills.

Behind the good shape of the multifamily segment is, according to the consultant, a set of factors which maintain it resilient to the pandemic, such as the «trust investors have on the segment’s fundamentals». Amongst its pillars are the urban growth, smaller households, inaccessible housing prices, as well as the growing demand for flexibility and services from occupiers.

And this investment will not stop here, since investment intents on the segment continue and, «in terms of prices, investors also continue to have the same requirements in terms of returns they had at the beginning of the year», revealed Marcus Roberts, Head of Operational Capital Markets at Savills on Europe.

Portugal has its eyes set on the segment

Despite not being a first investment option in Portuguese territory, the multifamily segment has raised a growing interest among investors, guarantees the consultant.

The reason for this is that we are currently «seeing the maintenance of the market’s fundamentals», while «a continuous imbalance and a divergence between the market’s offer and the demand’s requirements becomes evident» and was made more so by the pandemic, explained Alexandra Portugal Gomes, Associate Market Research at Savills Portugal.

This is especially true in the large urban centres of Lisbon and Porto, where families with low income might be faced with credit restrictions which will lead them to seek other rental solutions, such as Multifamily, which currently are «more than ever an expected response to the rental needs, creating at the same time a new investment product for institutional investors», explained Alberto Henriques, Capital Markets Associate Director at Savills Portugal.

According to him, «the multifamily segment proved itself a resilient source of income during this pandemic, as shown by the data from Savills’ report, it is thus natural that it will become an investment segment also in Portugal, as soon as there is a developed product».

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