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Assets «with beds», will be the most attractive for European investors in 2020
21 January 2020 | Observatorio Inmobiliario

Real estate assets which include «beds», meaning those assets which include accommodation, will be the most attractive for European investors in 2020, according to the 17th edition of the report «Tendencias del mercado inmobiliario en Europa 2020» (Real estate trends in Europe 2020) carried out by PwC and Urban Land Institute (ULI)

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Despite the logistic segment being the investors’ favourite, assets related to accommodation represent the majority on the list of the ten most attractive segments. Senior residences are ranked second, followed by shared dwellings, in third; private housing rental, in fourth; student residences, in fifth; affordable housing, in sixth and apart hotels in ninth.

PwC’s leading partner in Real Estate, Rafael Bou, explained that the 900 respondents who took part in the report see a great potential in accommodation assets, because they are not dependent on the economy’s evolution, but on consumption habits.

Furthermore, the ample liquidity and a sustained scenario of low interest rates lead investors to rate the prospects for 2020 as «very positive» and 78% of them expect yields above 5%

On the other hand, Madrid at fourth and Barcelona at ninth, are among the ten cities more attractive to invest in, besides Lisbon at tenth. The investors’ most attractive city to invest in is Paris thanks to the construction project «Grand Paris».

London stands out at number four, for being able to keep attracting investors, despite Brexit. The same does not occur in other English cities, which have fallen in this ranking, such as Manchester or Birmingham.

When questioned about their greatest fears for the future concerning real estate, most investors quoted the high construction costs. «The solution might be prefabricated assets, since it reduces the time of construction, allows for cost and deadline control and produces less contamination and labour risks», suggested Bou.

Merlin Properties SOCIMI’s CEO, Ismael Clemente defended automated construction to fix this issue. «It is what will stabilise prices in the future. It will lead to a more efficient balance between offer and demand in construction», he assured.