Residential demand is shaped by employment growth, real wage development and migration patterns. Although these factors take time to feed through into demand, they are notable for their reliability. When considering investment into the sector, therefore, macroeconomics comes before real estate economics.
Refinancing pressure is a second trend to take into consideration. A new study by Empira Group highlights a looming “maturity wall” in European real estate debt markets. The office sector is particularly affected, though residential and logistics sectors also face considerable volumes. Even if residential fundamentals remain supported by demographics, the refinancing environment affects pricing dynamics across the capital stack.
Despite relative economic weakness, Germany remains a structurally stable residential investment market, as does Switzerland. Demand in metropolitan areas remains high, driven by urbanisation, immigration and years of insufficient new const
