Investors looking to ‘significantly’ raise exposure to European living sector

Almost half (42.6%) of investors are predicting the proportion of their assets under management allocated to the European living sector will increase significantly by 2025, a new survey conducted by Savills Investment Management and advisor Savills reveals.

While the majority (63.2%) of respondents currently have less than 25% of their AuM allocated to the living sector, nearly half (48.5%) expect this to increase to up to 50% by 2025.

In terms of sectors and markets, the highest priority are:
•    Housing in the UK and Ireland
•    Student accommodation in the UK and Europe
•    Pan-European senior living

Richard Valentine-Selsey, head of European living research & consultancy at Savills, said: 'For those investing, or wanting to invest more, in the living sectors, favourable demand/supply dynamics, ESG, demographic changes, capital appreciation and long-term stable income are the five most important factors.'

Adam Alari, head of living research & strategy, Europe, Savills Investment Management, added: 'Over the next few years, respondents to our survey expect to continue deploying significant capital into multifamily as well as into single-family.'
Marcus Roberts, head of Europe - Savills operational capital markets, commented: 'The living sector has proven to be extremely resilient in a time of exceptional global upheaval. Given the amount of capital chasing the sector and the limited amount of high quality stock available, we expect competition for the best assets in the best locations to remain high.'


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