European Living Market Dynamics
Q1 2025

Europe’s living sector had a strong start to 2025, with quarterly transactional volumes up 95% year-on-year, or 19% when just focusing on private investment and excluding government acquisitions. Transactional volumes in the €250 million to €1 billion bracket rose 39% year-on-year, as larger deals gained pace.

Within the private transactions, the largest increases were in stabilised investment stock, which rose 44% compared to the same period last year, with increases in most major markets. Forward investment dipped 15% year-on-year, noticeably falling within the living alternative subsectors, amid heightened construction costs.

European markets and growth projections have been disrupted following expected U.S. tariffs, also leading to short-term caution from investors. Living will continue to appeal to investors, as a stable, resilient asset class in an increasingly uncertain global economic environment. Central bank and government actions to incentivise growth, among various regulation reviews, should also strengthen the outlook for the sectors.