The global residential living sector has become a high-performing and resilient asset class, providing investors with an attractive alternative to traditional real estate. Purpose-built accommodation is one of the rising stars in the living sector which offers scalable investment opportunities with consistent rental demand and professional management. Investors are increasingly drawn to this sector, not just for steady rental income but also for its institutional appeal, making it an ideal choice for private equity real estate funds and investors seeking long-term value.
In this article, we examine why purpose-built residential real estate is a compelling investment, the key advantages it offers, and how QIP’s strategic approach provides access to exclusive opportunities in the thriving living sector.
Real estate can generally be divided into residential and commercial properties—while commercial real estate includes offices, retail spaces, and warehouses, residential real estate is designed specifically for people to live in. Within the residential sector, purpose-built residential real estate (PBR) stands out as a category designed exclusively for rental occupancy. Unlike traditional homes that can be bought, sold, or repurposed, PBR developments are built from the ground up with a clear rental focus, offering professional management, dedicated amenities, and long-term tenant demand.
Some common types of purpose-built residential properties include:
As urban populations grow and homeownership becomes less accessible, purpose-built residential real estate provides a reliable and scalable investment option.
For investors seeking long-term stability and steady returns, residential real estate presents several advantages which include:
Residential housing offers a steady pool of tenants, making it a secure and attractive investment opportunity. As housing is a basic need, there’s always demand for rental housing properties, giving investors a reliable income stream. This consistent demand helps make residential properties more resilient, making it easier for landlords to find tenants and earn stable rental income.
Residential investments typically have lower initial costs, both in terms of purchase price and financing requirements, making them more accessible for beginners. This makes them a practical entry point for new investors looking to enter the market with a smaller capital outlay. Firms like QIP offer access to private equity real estate funds for investors to tap into portfolio diversification opportunities.
Residential real estate offers a dual advantage of property appreciation and rental income growth. As demand for housing increases, property values rise over time, providing long-term capital gains. Additionally, rising rents, driven by inflation and supply constraints, ensure consistent income generation—making real estate private equity an attractive avenue for investors seeking passive income with growth potential.
The tight rental markets, marked by limited supply, make purpose-built housing investments increasingly attractive. With demand outpacing availability, properties like a multi-family investment property are poised for growth. This constrained supply boosts the value of these assets, making them a promising option for those seeking long-term investment potential.
With these advantages, investors are increasingly looking to alternative assets such as student housing and multi-family real estate as lucrative investment opportunities.
QIP is actively expanding its UK PBSA portfolio, with a focus on tier-1 university cities where student demand outpaces supply. This expansion aligns with our data-driven investment strategy, which targets markets with limited housing stock, rising student populations, and strong rental growth. In the coming months into 2025, we have new developments in the pipeline in cities like London and Edinburgh, further strengthening our position as a key player in the UK student housing platform. Beyond student accommodation, we continue to grow our multi-family investment property portfolio as we hit another milestone and have begun leasing efforts at Straits Row, QIP’s flagship residential development in Chicago, in partnership with US-based Melrose Ascension Capital (MAC). As the residential real estate sector remains resilient, QIP is committed to delivering stable, long-term investment returns backed by strong rental fundamentals and market resilience.
Source:
JLL – Commercial vs Residential Real Estate: Pick the Best Investment for You
Julius Baer – Wealth Matters: How to Invest in Real Estate?
IP Global – Investing in Commercial vs. Residential Property: Which is Right for You?
Wealth Professional – Tight rental markets boost demand for purpose-built housing investments in 2025
