EMEA living sector sees strong investment growth in 2025

Colliers' EMEA Living Sector Snapshot for March 2026 reveals that investment in the living sector expanded throughout 2025, becoming the second most popular asset type. 

EMEA living - Colliers

Volumes rose slightly by 2% to €45 bn. This overall growth, however, hides varied regional performance; while leading markets like the UK and Germany saw declines, others such as France (+58%), Denmark (+31%), and Sweden (+30%) experienced significant recoveries.
The living sector now consistently accounts for 20-30% of transaction volumes in most major markets, notably reaching 51% in Denmark in 2025. Looking ahead, Colliers' Global Investor Outlook survey identifies the living sector as the most attractive asset class for 2026, with cross-border investors particularly keen on sub-sectors like purpose-built student accommodation (PBSA) and senior living. Affordable housing, build-to-sell, and single-family housing are also highly sought after.
This strong investor appetite is evident across the region, with PBSA driving over 25% of living sector transactions in 2025. Half of Europe's largest living sector portfolio deals over the past year included PBSA assets, with sales expanding 60% year-on-year in Italy and comprising 50% of activity in Spain. Denmark even saw a €400 million PBSA portfolio deal as its largest transaction of the year.
Regulatory changes are also creating investment opportunities. In Spain, rent caps have led to a critical shortage of rental housing, prompting a focus on privatising Build-to-Rent (BTR) portfolios for end-user sales and developing affordable housing through public-private partnerships in 2026. The Netherlands is also restarting social housing spending after political delays.
These dynamics are fostering greater diversification within the living sector, and investor sentiment points to positive capital value growth in 2026. Rental growth remains a key driver, with major established city markets expected to lead activity.