Multifamily investment volumes in Europe reach €92.3b, 79 percent year-on-year increase

Driven by large-scale mergers and acquisitions, European multifamily investment volumes in 12 countries analyzed reached approximately €92.3 billion ($104.7 billion) in 2021, a 79 percent increase year over year and a 120 percent increase on the past five-year average, according to Savills.

Vonovia’s acquisition of Deutsche Wohnen and Heimstaden’s purchase of the Akelius residential portfolio in Germany, Sweden and Denmark together accounted for about 40 percent of the total. The share of multifamily investment was as high as 54 percent of the total in Denmark, 46 percent in Germany, 39 percent in Ireland, 35 percent in Sweden and 32 percent in Finland. In all these markets, the sector was larger than offices in terms of investment volumes in 2021.

The average prime multifamily yield in Western Europe compressed by 7 basis points (bps) year over year in 2021 to reach a record low of 3.05 percent. Prime net multifamily yields are 3 percent or lower in the top six