Patrizia has published its report ‘European Residential Insights 2024/2025’, in which it provides an analysis of the residential sector based on more than a decade of data, highlighting the good structural position and stabilisation of housing markets. In addition, it identifies student housing as an outstanding investment opportunity and emphasises the need to understand the changing regulatory environment.
Mahdi Mokrane, head of investment strategy and research and co-head of fund management at the company, indicated that the residential real estate sector, after 40 years of successful investment, will continue to be key to the company's future. He also stressed that living strategies are central to Patrizia's goal of reaching €100 billion in real estate assets under management.
Marcus Cieleback, Patrizia's chief urban economist responsible for the report, said: "The outlook for the sector is encouraging. It is fundamentally sound, although it faces challenges from the evolving regulatory environment. This means we need to keep an eye on the rules of the game. There are great opportunities in the sector for value addition, co-living and student housing." In addition, the report addresses the current state of residential markets by highlighting that they are well supported by strong fundamentals underpinning the occupational market. Housing supply is diversifying and expanding, making the residential sector more attractive than ever to institutional investors.
Cieleback added: "One of the biggest impacts on housing markets over the past 12-18 months has been the change in interest rates. With interest rates falling and credit availability improving, more people will have the opportunity to buy homes again".
Patrizia's analysis also mentions the need for ‘brown to green’ strategies and the advancement of affordable housing supply to correct the housing policy gaps of the past, with PBSA identified as an emerging opportunity in the residential sector.
