Catella Research has analyzed the residential property markets in 61 cities and 19 countries in Europe, concluding that even the current pandemic phase afflicting Europe is hardly bringing about any changing effects on the investor and transaction markets. Demand in the low-interest-rate environment remains very high. This is reflected by a further increase in average purchase prices and rents since the last reporting period in October 2020. This was accompanied once again by sustained yield compression within the residential asset class. Even rising long-term interest rates and occasional inflation concerns cannot stop investors' interest in flats.
Thomas Beyerle, head of research Catella Group, commented, “The demand for European residential real estate remains extremely high. The increasingly noticeable addition of residential to investment vehicles that were previously primarily office or retail-focused is also giving the market a special dynamic. These markets continue
