Living Sector Momentum Strengthens in 2026
The European Living sector enters 2026 with strengthening investor conviction and improving market momentum. Allocations remain elevated, with 96% of respondents expecting to increase exposure over the next five years, underpinned by return stability, demographic resilience and the sector’s growing institutional significance. Investment volumes reached approximately €59 billion in 2025, the strongest annual outcome since 2023, supported by return stability and demographic resilience.
Investor focus continues to centre on the Private Rental Sector/Build to Rent (PRS/BTR) and Purpose-Built Student Accommodation (PBSA), which remain the most preferred segments. At the same time, interest in affordable housing and co-living is building as investors broaden strategies and respond to evolving demand and viability considerations.
Trends and perspective:
Cushman & Wakefield’s 2026 European Living Investor Survey provides a detailed view of investor sentiment and market expectations across the region. Based on insights from institutional investors with substantial exposure to the Living sector, the report highlights improving performance, stabilising macroeconomic sentiment and a sector that has emerged more resilient following recent market volatility. With clear insight into allocations, subsector preferences and investment drivers, the report equips decision-makers with the intelligence needed to capitalise on one of real estate’s most compelling long-term opportunities.
