Changes accelerated by the Covid-19 pandemic will unlock a range of locations and tenant groups for investors in operational residential real estate, according to our recent Global Living report.

Investors are increasingly targeting smaller cities that are fast-growing hubs for the knowledge industries, as well as developing homes for a broader range of occupier groups.

Boston, Austin, Seattle, Eindhoven, Oxford, Cambridge and Barcelona are among some of the destinations on global investors' target lists because these places have a large presence of growth industries such as education, tech and life sciences.

The report says that these hubs are creating strong and rising demand for student accommodation, co-living and multifamily, as students and young workers seek high-quality, purpose-built accommodation with significant amenity and a community element.

While these smaller cities don't offer the scale of megacities such as London and Paris, their compactness allows for shorter commutes (often made by bike), easier access to the countryside, more urban green space and better air quality.

Among investors that are operating in these newer locations is Value One, an Austrian-based pan-European developer of offices, student and residential accommodation in urban districts. Its MILESTONE Aachen West scheme, in Aachen, western Germany is its first urban living project designed for both students and young professionals.

Aachen is one of the country's most 'youthful' cities, according to our research, with 27 per cent of its population aged between 20 and 39.

Changes to work patterns and lack of affordability means flexible, purpose-built rental models to suit a generation of mobile young people, who are settling down later in life, will be among the property types in demand.

Another opportunity will be in providing rental product for baby boomers, who are seeking high-quality homes with access to amenities that are also part of a community.

The rental market is a growing area of interest for this demographic, which is increasing in number globally. Germany, France and Italy are also highlighted in our research as the European countries with the most 'aged' cities.

Meanwhile, the concept of the 15-minute city - places with expanding cycle networks improving mobility and accessibility - will unlock areas for residential development that were previously overlooked due to poor transport infrastructure.

Given these trends, we believe that cities still have a huge role to play in creating attractive and sustainable places for people of all generations.

Further information

Contact Marcus Roberts or Paul Tostevin

Webinar: Global Living Report Launch 2021

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Savills plc published this content on 21 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2021 15:14:01 UTC.