Annual European BTR investment nears €100bn
Investment into Europe’s build-to-rent market surged to record levels last year, with some €97bn (£81.7bn) in deals.
JLL’s annual report found a 50% increase on 2020, previously an all-time high.
The figures were bolstered by consolidation with mega-deals, such as German-listed Vonovia’s €23.5bn takeover of rival Deutsche Wohnen and Heimstaden’s €9.1bn purchase of a 29,000-unit Nordic and German portfolio from Akelius, both in the second half of the year.
Investment into Europe’s build-to-rent market surged to record levels last year, with some €97bn (£81.7bn) in deals.
JLL’s annual report found a 50% increase on 2020, previously an all-time high.
The figures were bolstered by consolidation with mega-deals, such as German-listed Vonovia’s €23.5bn takeover of rival Deutsche Wohnen and Heimstaden’s €9.1bn purchase of a 29,000-unit Nordic and German portfolio from Akelius, both in the second half of the year.
Germany attracted the highest level of investment at €48bn. Excluding the Vonovia merger, the market saw capital invested pushed 48% above the five-year average.
Gemma Kendall, head of multifamily investment for EMEA at JLL, said: “Strong investor demand and limited buying opportunity creates a dynamic market in which investors are continually evolving their strategies to identify new geographies and products.
“New national markets, such as the UK and Spain, have emerged within investor sightlines in recent years, with further predicted growth in 2022 and beyond, while opportunities in secondary cities with strong fundamentals are furthering portfolio diversification.”
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