EMEA Living Investor Survey 2024

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EMEA LIVING INVESTOR SURVEY

DEMOGRAPHICALLY DRIVEN DEMAND AND GREATER RETURN STABILITY ARE KEY ATTRACTIONS FOR LIVING INVESTORS 02

EMEA LIVING SECTOR DEMAND CONTINUES TO BE VERY MUCH LED BY DEMOGRAPHY AND SOCIETAL CHANGE. Rising rates of urbanisation and smaller household sizes over time have amplified the natural demand for housing in the region. In addition, with affordability becoming more stretched and home ownership patterns trending lower, this has led to a significant rise in demand for private rental and affordable housing in recent years. A rising domestic student population and increasing numbers of international students undertaking education in Europe is also supporting the outlook for purpose-built student accommodation (PBSA). Furthermore, the aging of populations will inevitably increase demand within the senior living segment.

The results of our 2024 Living investor survey show that investors are keenly aware of the impact of these changes and how they are influencing real estate demand in the sector. For example, demographics was cited by almost 90% of investors asked to identify the key attractions for investing in the sector. Return stability was also another reason heavily cited by respondents for investing capital into the sector, a plus point borne out in MSCI data which has shown that long term volatility in capital values and rents has tended to be lower for the living sector as compared to other sectors of the commercial real estate market.

THE DEMOGRAPHIC DIVIDEND AND RETURN STABILITY ARE KEY ATTRACTIONS FOR INVESTORS IN THE LIVING SECTOR* 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

INCOME GROWTH & LIQUIDITY STABILITY OF RETURNS POPULATION/DEMOGRAPHIC DIVIDEND Source: Cushman and Wakefield, February 2024 *Percentage of respondents citing the following factors in response to the question 'what are the key attractions of investing in the living sector?' COMPATIBILITY WITH ESG FACTORS INFLATION HEDGE PORTFOLIO DIVERSIFICATION

SUPPLY DEMAND DYNAMICS