European Multifamily

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Multifamily investment on the rise

Multifamily becomes a core asset type

European commercial and residential investment volumes reached approximately €257bn in 2020, marking an 18% decrease in 2019 and an 8.5% decrease on the past five-year average. Multifamily was the second most active sector last year at €46bn, capturing part of the capital, which has been diversifying away from traditional real estate sectors, such as offices and retail.

The pandemic has triggered behavioural changes creating uncertainty about the future of occupational demand for certain types of assets. Last year the share of office investment has fallen from 39% in 2019 to 34%, as we observed proportional increases in logistics (from 12% to 15%) and multifamily (14% to 18%). The share of multifamily was as high as 53% of the total in Denmark, 39% in the Netherlands,28% in Sweden and 18% in Finland, which are markets where the sector has been established for a number of years. Shares were also exceptionally high in smaller markets where the sector is maturing rapidly, such as 50% in the Czech Republic (due to a major portfolio transaction), 39% in Ireland and 29% in Spain.