EMEA Living Market Dynamics Q1 2026

Investment in multi-housing and PBSA reached €13.2 billion in Q1 2026, down 21% from the same period in 2025. Excluding the €7bn UK government housing purchase last year, transactional volumes rose 37%, with private sector investment rising 43%, amid strengthened sentiment and larger deals.

Some 61% of transactional volumes fell in the €100m+ deal size brackets, as larger deals continue to grow in prominence. This was most evident in UK PBSA, with further large transactions in multifamily in Continental Europe.

Finland and the Netherlands experienced the highest growth year-on-year, both influenced by policy, following the Finnish pension investment reform and the Dutch reduction of RETT at the beginning of this year. Elsewhere Spain was boosted by further investment from Canadian pension funds.

The largest gains were in PBSA and affordable housing, each more than doubling year-on-year, outpacing growth of 7% in multifamily.

Affordability challenges continue to shape dynamics across the sectors, with rental growth slowing in most markets. Various governments are exploring further rent regulations to limit tenant costs. Residential construction costs, while lower than recent peaks remain elevated, stifling development activity. Declining permits are expected to lead to further falls in new housing, underscoring the need for private investment.