Investec research reveals global institutions plan to double investment into U.K. living sector, with student housing most attractive

Despite an unprecedented period of macroeconomic volatility, global institutional investors’ attitudes toward the U.K. living sector are at their strongest in nearly half a decade, according to Investec Real Estate’s third Future Living report. The trend is being driven by a combination of the sector’s compelling societal and demographic trends, which were accelerated by the pandemic, and an acute shortage of product.

Almost two-thirds of respondents (62 percent) said they expect their portfolio allocation to the living sector to increase over the next five years, compared with 40 percent in 2021. Gross investment into the sector over the next 12 months is set to double compared with the previous iteration of the report, with an average of £248 million ($305 million) per respondent in 2023 versus £113 million ($139 million) in 2021.

The student accommodation sector has seen the biggest shift in investor appetite. It has risen from 10th to first in term