AEW, the global real estate investment manager, has released its latest research on the European residential sector, publishing its internal forecasts on rental growth, yields and total returns across 24 different European residential markets for the first time.
Key findings of the report include:
On a risk-adjusted basis, residential stands out as the most attractive property sector. Also known as the private-rented sector or multifamily, residential is the most resilient of all property types. Residential income streams are underpinned by a primary human need and come from a diversified individual-tenant base, while supply constraints limit void periods. Residential investments therefore offer bond-like, stable and predictable cash flows. For these reasons, residential total returns have historically been less volatile than for the other property types, while generating prime total returns of nearly 8 percent.
Continued lack of supply and stro
