Prior to the outbreak of COVID-19 in the UK, the multifamily sector enjoyed a strong start to 2020, with CBRE recording £1.055bn of investment in Q1. This is the second highest quarterly investment volume since we began tracking investment into the sector in 2014.
However this is largely reflective of the market prior to COVID-19. Following such a strong start to the year, we would have expected investment in Q2 to fall, but this will now be more acute given that the market is effectively on hold.
The overall impact of the virus depends on a range of factors. However, demand for multifamily remains high, as illustrated by the £800m worth of deals that were under offer at the end of Q1 2020. Given this demand, and the underlying fundamentals of the sector, we do expect investment activity to bounce back relatively quickly in the wake of COVID-19.