‘Resi offers long-term income quality’

ANDREW ALLEN, GLOBAL HEAD OF INVESTMENT RESEARCH REAL ESTATE, ABERDEEN STANDARD INVESTMENTS

Andrew Allen, Global Head of Investment Research Real Estate, Aberdeen Standard Investments

The residential sector offers a dependable and durable income stream, Andrew Allen, Global Head of Investment Research Real Estate, Aberdeen Standard Investments, told Real Estate Day.

‘At Aberdeen we are increasingly interested in investing across the residential sector and thinking about student housing, micro living, collaborative living, the private rented sector, senior housing and so on,’ he said. ‘Why are we interested in that? It is very simple. Ultimately, it’s the long-term income quality that the sector provides.’

Across Europe’s winning cities there is increasing urbanisation and rapid growth but ‘a complete inability on the part of those cities to provide sufficient supply’, Allen said, so prices have been going up and the size of the rental market has increased across those living sectors.

Therefore it is reasonable to expect that ‘the dependable income stream from residential will be very durable over many years to come,’ he said.