European Living Market Dynamics Q3 2025

Private investment in living and healthcare real estate reached €14.1 billion in the third quarter, up 6% on the same period last year and in line with the five-year Q3 average (2020-24). Year-to-date investment rose 7% from 2024 levels, but is still 20% below the five-year average.

PBSA investment in Q3 was more than double Q3 2024. Continental Europe had the busiest quarter on record, due to the completion of CPPI’s €1.2bn purchase of the Livensa Living platform in Spain and Portugal from Brookfield. In the first three quarters of 2025, PBSA purchases in Continental Europe contributed 54% of the sector total, compared to 32% in 2020-24.

Care home investment also experienced significant gains, rising 58% year-on-year, again through large-scale entity activity in Spain. With various substantial deals already closed in Q4, this sector is expected to have a record year, largely due to North American buyers and M&A deals. Investment in entity deals in Q3 rose 55% year-on-year, compared to a 16% increase in investment sales and a 20% fall in forward investment related to high construction costs limiting viability.

Challenges in new development are evident in plunging starts across major European cities. Governments are pursuing initiatives to unlock growth and housing, streamlining planning, increasing grants and aiming to support private capital. Sentiment is strengthening, values recovering and new fundraising is gaining pace.

• UK Living Market Dynamics Q3 2025 
• Germany Housing Market Monitor Q3 2025
• Netherlands Living Market Dynamics Q3 2025 
• France Living Market Dynamics Q3 2025 
• Spain Living Market Dynamics Q3 2025
• Switzerland Housing Snapshot 2025