European Living Investor survey indicates PBSA growth

63 respondents, who collectively have over €700bn in real estate AUM, gave their insights into the Living and Hotels sectors.

Students at PBSA investment - Savills | PBSA News

Investors are increasingly diversifying away from the traditional commercial real estate sectors into Living (or ‘beds’) and Hotels. These findings are according to Savills Research and Savills Investment Management via their European Living Investor Survey.

In Europe, an increasing proportion of investment is in these sectors. In 2014 was 23% of total investment rising to 33% in 2023.

The Living and Hotels sectors are defined by Residential as PBSA, Multifamily, Single Family, Affordable Housing, Co-living and Senior Housing.

Hotels include Mid-Market, Lifestyle, Luxury, Budget, Hostels, Serviced Apartments and Branded Residences.  

63 respondents, who collectively have over €700bn in real estate AUM, gave their insights into the Living and Hotels sectors.

A majority of investors (63%) are based in the UK, with the remaining large proportion (37%) based in continental Europe.

PBSA

The sectors they currently have the most exposure to, the most common Living sectors are Multifamily (65%), PBSA (49%) and Single Family Housing (37%).

What sectors are investors targeting?

Multifamily is the most sought-after sector for investors, with 84% of respondents saying they intend to increase their exposure. This is followed by PBSA (63%) and Single Family (49%). The latter is being driven by the intentions of UK-based investors, with 69% of these respondents looking to invest. This is compared to 26% of European investors.

How much capital are investors looking to deploy?

The survey reveals that respondents want to invest around €64bn over the next three years alone across the sectors.

The majority (84%) of this capital is targeting Living, with PBSA and Multifamily expecting to see the greatest inflows of capital: €12.1bn and €16.5bn respectively.

In January, a Savills report found that the future of the Australian student accommodation sector is looking positive.

It also revealed that investors are shifting away from the inner-city of Sydney and Melbourne and toward places such as Sydney’s northern suburb of Macquarie Park.