Rising investor interest for single-family, co-living and senior living in Europe

A survey by Savills and Savills IM, polling investors managing a combined €540 bn in real estate assets, reveals that PBSA continues to be the most popular sector in Operational Real Estate (OpRE) for the second year running.

Housing

However, the survey also indicates a growing interest in Single Family homes, Co-Living spaces, Senior Living facilities, and Care Homes, suggesting these sectors are becoming more established.

Here's a breakdown of investor priorities within OpRE:

PBSA: 58% of investors (down from a 63% average in 2023-2025 surveys)

Multifamily: 52% (down from 71% average)

Single Family: 52% (up from 44% average)

Co-Living: 50% (up from 42% average)

Senior Living: 42% (up from 37% average)

Care Homes: 42% (up from 25% average)

Interest in the Hotel sector also increased, particularly for Serviced Apartments (aparthotels), rising from 27% to 33% year-on-year.

Geographically, investors are prioritising the UK and Ireland, followed by the DACH region (Germany, Austria, Switzerland), and Southern Europe (Italy, Spain, Portugal) for the next three years. Additionally, 16% of investors are pursuing a pan-European strategy, consistent with last year's findings.

Regarding investment methods, over half (58%) prefer direct private market investments or joint ventures. Interestingly, 2026 shows a renewed interest in accessing OpRE sectors through Funds, with 23% preferring this route, a significant jump from only 8% in 2025. This suggests that funds will play a larger role in 2026, offering investors a way to enter OpRE without needing to establish their own management infrastructure.

Marcus Roberts, head of Europe - Savills Operational Capital Markets, says: “Our survey respondents are looking to invest c.€45 bn over the next three years alone across the OpRE sectors, with most expecting 2027 to be the year they are most active in that period. Following a challenging few years for fundraising, investors are more optimistic about the coming 12 months and expect to see conditions improve, with value-add and core-plus strategies being seen as the easiest to raise capital for.”

Harry de Ferry Foster, head of UK, Savills Investment Management, says: “Improving investor sentiment is an encouraging sign that capital is gradually returning to European real estate. Appetite remains uneven across sectors and geographies, however, underscoring the importance of disciplined stock selection even in more resilient OpRE categories and demand for active asset management capabilities in what has become an income-led, fundamentals-driven investment cycle.”

Richard Valentine-Selsey, head of European Living Research & Consultancy at Savills, says: “Investment into the OpRE sectors across Europe has accounted for a growing share of total investment since 2022, rising from 30% to 38%. In 2026, close to two-fifths of respondents expect to increase their allocations further over the next three years.”