A study commissioned by Deutsche Pfandbriefbank AG (pbb) among 427 decision-makers in the real estate and housing industry, conducted by the opinion research institute Civey, examines the current attractiveness and future requirements for various real estate segments. The results highlight a clear preference for residential properties as the primary asset class.
According to the study, 64 per cent of respondents consider residential properties to be the most attractive option in the real estate market. Office properties follow with 37 per cent, while senior living is rated as attractive by 35 per cent of participants. This assessment underscores the consistently high relevance of the residential segment for investors.
Focus on Innovation and Future Demand
The residential asset class also holds a leading position in terms of innovation potential. 49 per cent of respondents identify the residential sector, particularly in conjunction with care and support services, as a central innovation driver within the real estate industry. Flexible living and working arrangements follow with 37 per cent, while digital infrastructure and smart buildings are mentioned by 34 per cent of respondents.
For the next five years, decision-makers forecast a high demand for classic residential properties, mentioned by 28 per cent of respondents. Additionally, significant demand is expected in senior living (18 per cent) and serviced living (7 per cent). This means that, according to the study participants, more than half of future demand will be for diverse forms of housing.
Decision Criteria for Investments
When making investment decisions, yield expectations and user-side demand are particularly prominent. Both factors were cited as decisive by 47 per cent of respondents respectively. Other important criteria include financing conditions, which 36 per cent of respondents consider relevant, and the property's flexibility of use, which is important for 34 per cent.
Gerhard Meitinger, Head of Real Estate Finance Germany at pbb, commented on the results by stating that residential properties play a central role for the real estate industry. He pointed out that, at the same time, the requirements for living space are changing due to demographic shifts and new forms of housing. For financiers, this creates the necessity to consider flexible solutions and different usage concepts more strongly. The study illustrates the opinions of the respondents without depicting actual market conditions or investment volumes. Participants had the option to provide multiple answers.
