According to JLL’s Global Living Investment Universe research, Europe’s high-growth living sectors will drive global transactional volumes of $1.4tr over the next five years.
European countries form 11 of the largest 15 global living investment markets. Over the last five-year period the largest gains have been in France and Spain. Looking ahead, JLL anticipates further growth in Germany, the UK and Spain.
Multifamily is expected to continue to dominate transactions, while purpose-built student accommodation (PBSA), affordable housing and later living are all expected to experience rapid growth during this period.
Trends of strong demand from growing urban populations, shifting preferences and a persistent housing undersupply are attracting a variety of capital to the living sectors.
Large international investors have been key to unlocking new markets and specialist subsectors. Globally, cross-border investment accounted for a quarter of the total over the past five years, this is higher in Europe at 46% overall and over 70% in various growing markets.
In Europe, living has risen from contributing 17% of direct real estate investment in 2014, to 26% in 2024. This is expected to exceed 33% over the next five years, as living retains its spot as the largest sector, both in Europe and globally.
“Europe’s living markets stand out as some of the most attractive and fastest-growing globally.
“The region is struggling with a clear lack of suitable housing, which will only worsen as new supply fails to keep up with overwhelming demand. Global investors are crucial to unlocking new housing and are innovating with tailored solutions across the continent.”
Emma Rosser, Director – Living Research EMEA, JLL
Annual European living transactions rose 19% in 2024. In Q1 2025, investment continued to climb, up 19% on the same period last year (private investment excluding government purchases).
Further growth will come as mature markets rebound, for example Germany and Sweden. Other growth markets like the UK and Spain have a diversity of subsectors and are beginning to see larger deals. In emerging markets such as Italy, developers are starting to establish investor-grade products.
JLL forecasts extraordinary demand across European living markets over the next decade, with an additional 16.4 million new urban homes needed by 2035, bringing the total to 218.3 million. Current investor-owned inventory would satisfy just 4% of this projected need, highlighting the sector’s immense growth potential.
“We anticipate a surge in larger platform deals as investors seek to rapidly build scale and diversification. These platform acquisitions will likely accelerate market maturity, professionalise operations and enhance overall sector liquidity.
“This shift towards larger transactions not only demonstrates the sector’s growing appeal but also positions living assets as a core component of institutional portfolios, offering resilient cash flows and long-term growth potential in an evolving real estate landscape.”
Gemma Kendall, Head of Living Investment and International Capital Markets – EMEA, JLL
