Savills have released their Q1 2023 Australian Multifamily Report which outlines that investor appetite for multifamily continues to be resilient, with a staggering $15.85bn of investment earmarked to the sector.
Despite current macroeconomic challenges, the recent report indicates that multifamily continues to be one of the most in-demand real estate sectors globally, not just in Australia.
Multifamily has been found to be highly attractive given its inflation matching characteristics and structural tailwinds, including increased occupier demand, a continuing supply shortfall, rising migration and challenges to home ownership.
In Savills’ Q3 2022 Investor Sentiment Survey, two thirds of European investors said they were likely to invest in Multifamily (across Europe and the Middle East) in the next 12 months.
This follows a prolonged period of growing investor demand.
Savills’ analysis shows that the number of funds targeting Australian residential investment strategies has grown exponentially over the past 18 months.
The funds are now looking at their next steps and broadening their investment horizon to expand into Australia.
