Residential is the most resilient of all property types in Europe, according to AEW’s most recent report.
As a result, residential investments 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 close to 8 percent. On a risk-adjusted basis, residential stands out as the most attractive property sector, the report said.
Continued lack of supply and strong demand from new household formations is driving prime rental growth in most European markets. Despite an increasing number of rental regulations to ensure affordability for tenants, prime residential-rental growth is projected to be at 2.6 percent p.a. over the next five years on average in Europe.
To read the full report, click here.
