European Residential Real Estate

Invesco Real Estate European Living Strategy

The European residential sector continues to grow. The increasing number of households leads to additional demand for housing and the old stock does not meet current and future requirements. The need for modern, institutional-quality residential real estate is equally high.

At a glance

In Europe, urbanisation continues and the number of households is growing. The private rented sector (PRS) offers low correlation to other real estate sectors in the EU, stable regular income and benefits from the growing institutional investment market at European level.

Our pan-European living strategy seeks to take advantage of the long-term housing supply/demand imbalance and offers institutional investors the potential for long-term income generation.


The strategy provides access to a diversified pan-European residential open-ended portfolio. Aim is a gross income return of 4% p.a. and gross total return of 5.5% - 7.5% p.a. Please note there is no guarantee the target will be achieved.

We focus on

  • Markets with strong demographics: Concentrate on markets and cities which benefit from urbanisation trends under consideration of house price developments
  • “Turn-key” new residential developments: Early enter into new residential developments in strong micro locations; consider “operative” models with additional services and alternative usage such as micro-apartments and student housing
  • Sustainability: Sustainable use, quality, and energy efficiency – green ratings increase attractiveness to tenants

Investment process

The Invesco Real Estate team’s investment approach focuses on large-scale, high quality opportunities in recognised locations within proven letting markets. These aspects are constantly monitored by the research team.

In addition, ESG considerations are fully integrated, from acquisition planning and development to ongoing property management.

Steps of the investment process

  • Identify sites with full planning and underwrite project pipeline
  • Invest and manage equity, structure and manage debt
  • Monitor project development and achievement of high sustainability standards
  • Active management, lease up and stabilize assets

Why Invesco

With 582 staff located in 21 offices and 16 countries globally, Invesco Real Estate is responsible for assets of around €80.7 billion (as of 31 December 2021). Our focus is on continually enhancing the investment outcomes we deliver to our clients.

  • Invesco Real Estate has an established platform with 173 professionals in London, Munich, Paris, Prague, Madrid, Luxembourg, Milan and Warsaw, covering all major European real estate markets.
  • We have dedicated residential expertise in Europe with over 30 years of experience.
  • The Invesco Real Estate European Living Strategy is a continuation after a previous country-specific strategy has been fully invested and successfully partly realised.
  • Invesco has a clear residential strategy with a credible pipeline of investment opportunities in all preliminary target markets.

Investment team

The team works directly with contractors and developers. However, having a strong reputation, an experienced team and a strong track record allows them to source off-market opportunities, which they believe can be an important differentiator in the sector.

The team has a deep understanding of the European residential market and has established relationships with which to source the best opportunities to deliver attractive returns.

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Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.


    Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised. Real estate investments are typically non listed on regulated markets and need to be valued via the application of appropriate models (potentially applied by independent experts). This may lead to inaccurate valuations which may not be reflected into transaction prices. Changes in interest rates, rental yields and general economic conditions may result in fluctuations in the value of the strategy. Real estate investments are exposed to counterparty risk, which is the risk that a counterpart is unable to deal with its obligations. The strategy may use derivatives (complex instruments) and borrowings, which may result in the strategy being significantly leveraged and may result in large fluctuations in the value of the strategy. Real estate investments can be exposed to new sustainability-related regulatory requirements that may negatively affect the value of those assets which are not compliant and can envisage significant costs to be invested to comply or to simply improve their sustainability profile. In addition, real estate investments can be also significantly exposed to negative economic effects stemming from climate change, natural disasters and the general preference of investors for assets with better sustainability features.


    As the strategy invests only in the ‘living’ sector (both traditional residential and ‘alternative’ investments such as student housing and co-living), it may be exposed to specific sector’s volatility and value drops.

Important information

  • All data is provided as at 31 December 2021, sourced from Invesco, unless otherwise stated.
    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.


    This document does not form part of any prospectus. It contains general information only and does not take into account individual objectives, taxation position or individual financial needs. It does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Nor does it constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.