Cross-border investment in Europe’s burgeoning build-to-rent sector has doubled in the last two years, surging to €17.8bn (£15.9bn) last year.
Changing regulation, demographic shifts and the lessening affordability of home ownership have seen annual levels of foreign investment soar from €8.2bn in 2016, according to new data from CBRE.
The US was the largest source of cross-border capital for the sector, providing €6.7bn or 37% of investment.
This was followed by €2.6bn of UK investment and €1.9bn from Sweden.
REITs and listed funds deployed the most capital into the European market, accounting for 24% of the finance.
Investment managers contributed 21%, with property companies at 17% and institutions providing 16% of funds.
The report also found an international preference for portfolio transactions, making up 62% of capital transacted.
CBRE said these packages enable cross-border investors to deploy capital at scale and establish platforms quickly. However, the agency expects established international investors will also turn to single assets as they expand.
Thomas Westerhof, CBRE head of residential investment properties for continental Europe, said: “We expect there to be further internationalisation and consolidation, as fund managers set up new dedicated pan-European investment vehicles and global capital is increasingly finding its way into the markets.”
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