Apartment properties have typically comprised only a small part of the institutional investment world with investors choosing to back properties that are being built to sell as opposed to rent. But times are changing.
While flexibility in terms of taxes and other planning have made investing in the apartment sector a top choice and, in fact, the largest portion of the U.S. investment market, this has not been the case globally. Now, in Q3 of 2019, investments in apartment properties around the world have soared to nearly a quarter of all investments in income-producing properties.
The markets seeing the largest surges in investments per capita are in the U.K, Spain, Germany and the Netherlands. Each of these areas has seen at least $5B in apartment investing to date in 2019.
Will investing in income-producing apartment properties become a truly worldwide phenomenon? Only time will tell. If we had to wager a guess, we’d say it’s the future of CRE. And we’re only seeing the tip of the iceberg.