Institutional investors regain their appetite for housing

Posted on Oct 16, 2020 at 8:32 am

The health crisis has reinforced the trend. After having turned away from housing for a few years, institutional investors are now fond of this type of investment. Starting with banks and insurance companies, including mutuals.

Through their asset management activity, they have multiplied their investments in this area by five in one year in France, according to BNP Paribas Real Estate. In the first half of the year, they were thus behind 21% of “block” residential property purchases (by building or programs), which represented 1 billion euros. Along with other institutional investors, they accounted for more than half of block housing acquisitions over the period. Witness to this phenomenon, AXA IM has increased the share of housing in its property portfolio from 15% to 24% since 2015. Recently, the asset manager ofAXA has forged a partnership with In’li, the subsidiary of the social landlord Action Logement, to create intermediate housing for the middle classes, a market segment where supply is sorely lacking in metropolitan areas.

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