Multifamily investment volumes in Europe reach €92.3 bln, a 79% increase y/y

Driven by large-scale mergers and acquisitions, European multifamily investment volumes in the 12 countries analyzed reached approximately €92.3bn in 2021, a 79 percent increase y/y and a 120 percent increase on the past five-year average, according to Savills. In Poland, multifamily investment activity hit an all-time high of close to €725 million in 2021.

The challenge for core investors in 2022 will be to identify stabilized assets, while more opportunities will be available for new developments and forward funding agreements. However, labor shortages, rising construction costs, and supply chain disruptions will slow down development activity.

“Heimstaden's portfolio acquisition from Spravia (formerly Budimex Nieruchomości) accounted for over 40 percent of the Polish multifamily investment volume. With this market segment still in its infancy in Poland, forward funding transactions continue to predominate. The sale of investment certificates by Bank Gospodarstwa Krajowego to the Rental Housing Fund (Fundusz Mieszkań na Wynajem) and the Housing Sector Development Fund (Fundusz Mieszkań dla Rozwoju) could have added another €475 million to Poland’s record multifamily investment activity in 2021. Additionally, that volume is also exclusive of last year’s takeovers of residential developers, including TAG Immobilien’s acquisition of Robyg, which are likely to deliver some projects to the private rented sector in the future,” Jacek Kałużny, Associate Director, Residential Capital Markets, Savills Poland, said.

(WBJ)