“Build-to-rent has arrived, and together with other institutional housing models will play an important role in delivering more high-quality rental homes for Australians at scale,” Kandelaars said.
“Institutional investors are looking for markets where they can invest with confidence. Better data, greater transparency and more mature investment settings all help attract the long-term capital needed to deliver more housing.”
Ben Martin-Henry (pictured top right), head of private assets research, Pacific at MSCI, said the index fills an important gap in local market data.
“This index closes a significant data gap in the Australian market,” Martin-Henry said. “For institutional investors evaluating BTR as a standalone allocation, or comparing it against established commercial property sectors, a credible performance benchmark has been a missing piece.
“These results show the sector holding its own against core real estate on a risk-adjusted basis, with a distinctive yield and cost structure that investors now have the data to properly underwrite.”