Investment in residential assets, which comprises ‘multifamily’, student residences and senior residences, represents 27%
of global real estate investment in the first three quarters of 2020, compared to 16% a decade ago. The capital allocated by the funds to this segment, until now considered alternative, has increased by 60% in the last four years.
Resilience and a strong foundation in the segment’s fundamentals are maintained in the current challenging macroeconomic environment, in which demographic trends and affordable housing needs continue to drive demand for rental housing.
Even with greater global uncertainty as a result of covid-19, this sector has held up better than others this year. Investment activity has been driven largely by the consolidation of companies from all subsegments, including multifamily and student residences.
Despite the short-term effects of the pandemic from a macroeconomic point of view, the long-term growth in the volume of capital devoted to alternative assets speaks for itself.