European Residential Real Estate Investment Market Surpasses €62 Billion in 2025, JLL Projects Over €70 Billion in 2026

European residential real estate investment volumes rose 22 percent year-over-year to €62.2 billion in 2025 and are projected to surpass €70 billion in 2026, according to JLL's EMEA Living Market Perspectives 2026 report, published March 9, 2026. The analysis covers transactions in multifamily housing, student housing, subsidized housing, co-living properties, care homes, and senior housing valued at €5 million or more.

Platform Deals and Institutional Capital Drive Growth

The expansion of the European residential investment market was led primarily by large-scale platform transactions and the return of institutional investors. Corporate acquisition investment volumes surged 168 percent year-over-year in 2025, while purchases of existing properties increased 20 percent. By contrast, forward investment volumes declined 22 percent over the same period.

"Investor confidence is clearly returning," said Gemma Kendall, Head of EMEA Living Capital Markets at JLL. "We are seeing larger platforms change hands, and institutional capital is becoming more active again. The fundamentals remain favorable, yields are compressing, and pricing certainty is bringing buyers back to the table."

Transactions exceeding €500 million more than doubled, rising to approximately €14.2 billion from €6.5 billion the prior year. The average deal size also increased, reaching €50.9 million compared with €40.3 million in the previous year.

UK Leads European Market; Nordic and Irish Markets Post Strongest Growth

The United Kingdom remained the largest European residential investment market in 2025, accounting for 37 percent of total volume at €22.8 billion. Germany ranked second with a 14 percent share and €9 billion in investment activity, followed by France and Spain, each representing 7 percent of total volume.

Among individual markets, Norway recorded the highest relative year-over-year growth at 69 percent, followed by Denmark at 64 percent and Ireland at 54 percent.

U.S. investors were particularly active in 2025, deploying €17 billion into European residential assets — the highest level on record, according to JLL.

Multifamily Dominance Eases as Care Homes Gain Share

Multifamily housing remained the most sought-after asset class within the European living sector, accounting for just over half of total transaction volume in 2025. However, its market share has declined from the 60 to 80 percent range seen in prior years, signaling a broadening of investor interest across the living sector. Care home and senior housing investment showed particularly dynamic growth, according to the JLL report.

JLL noted that supply constraints across European residential markets continue to intensify, a structural dynamic that underpins the positive investment outlook heading into 2026. The firm projects total European residential investment volumes will exceed the €70 billion threshold in 2026, supported by continued platform deal activity and recovering investor sentiment.

Sources

JLL, "Europäische Wohninvestments wachsen 2026 auf mehr als 70 Milliarden Euro," March 9, 2026. https://www.jll.com/de-de/newsroom/europaeische-wohninvestments-wachsen-2026-auf-mehr-als-70-milliarden-euro