European multifamily investment activity is expected to remain strong in the second quarter and could surpass €22 billion ($25 billion) in first half 2020, similar to 2019 levels, the second highest year on record, according to Savills latest research.
This is driven by investor confidence in the sector’s fundamentals, including increasing urbanization, smaller households, unaffordable house prices and rising occupier demand for flexibility and services — factors that are less dependent on the cyclical health of the economy and the recent effects of COVID-19.
Marcus Roberts, head of Europe for Savills Operational Capital Markets, said, “From a pricing perspective, investors still have the same return requirements as they did at the start of the year. Where we are seeing an impact on pricing is, therefore, less about changing return requirements and more about a softening of underwriting assumptions as companies strategize on the rental levels and occupancy rate
