Welcome home: The case for Asian investment in European residential property
European residential investment is compelling for a number of reasons. In a nutshell, this sector (which, in a broader sense, includes multifamily/private rented sector, student housing and senior housing) offers an attractive combination of income and growth to a property portfolio. The residential sector largely is based on structural growth drivers, providing insulation from cyclical volatility. And, to some extent, while this sector benefits from economic growth, it can also thrive in an environment of slow economic growth and financial market volatility.
In 2016, European real estate transaction volume originating from Asian investors was about €20 billion (US$22.4 billion). Asian investment in European real estate has been trending upward for a number of years, for three main reasons: the sheer size of the European market, diversification and the range of opportunities potentially offering high returns.
First, European property markets are sizeable and diverse.