M&G analyzes real estate in Italy, starting with student hostels

According to Marcus Eilers, head of European housing at M&G Real Estate, the market potential in Italy is vast but divided between cities. The company's strategy is currently expectant due to expected price reductions. Recently, there have been two important transactions worth 70 million euros in Berlin and Lisbon.

"In the rental market in Italy, it is not seen as a choice, but as a necessity. The goal remains always to purchase one's own home. When will Italy start to develop a multi-family housing market offering modern housing at affordable prices, with amenities and professional management? When the market will have enough former students who lived in dormitories and who, when they become young workers or start a family, will want to replicate the benefits of the housing model they may have learned", says Marcus Eilers.

According to Marcus Eilers, the housing market in Italy has "potentially significant, but still too traditional and requiring patience" opportunities.

M&G Real Estate launched the M&G European Living Property fund in January this year, following the success of the €1.5 billion UK Living fund, which focuses on the residential sector in the UK. The new European fund, which is aimed at institutional investors and invests in the European residential sector, including student housing, single and multi-family homes and retirement homes, will see €600 million of investment from M&G client MN, a pension trustee and pension fund asset manager in the Netherlands, while €178 million will come from M&G's internal fund.

Markus Eilers, Head of European Housing, has been tasked with leading the expansion in residential real estate in Europe. The fund has already acquired serviced apartments in Finland for €75 million, rental housing in Ireland for €99.5 million and, in August, an apartment complex in Spain's Bilbao for €98 million.