PATRIZIA’s residential report finds Europe remains top global destination for investors seeking cross-border diversification

While global transactions in the living sector were down 52 percent year-on-year, robust cross-border investment activity has ensured the residential sector remains an attractive asset class for institutional investors seeking portfolio diversification and stable income, according to PATRIZIA’s Residential Market Report 2023.

Europe remains the number one destination for cross-border capital flows into residential assets, accounting for 70 percent of global cross-border transactions on a rolling annual basis. Around 45 percent of the capital came from investors in the Americas, while just under 40 percent came from European investors and 15 percent from investors in APAC. The United Kingdom, Germany, the Nordics and Spain are the preferred destinations within Europe.

Multifamily or build-to-rent (BTR) remains dominant in Europe, with the sector accounting for more than 60 percent of total institutional investment volumes in the living sector. However, living