JLL: EMEA Living Sector Investment Hits €13.2B in Q1 2026, Private Sector Up 43%

Investment in EMEA multi-housing and purpose-built student accommodation (PBSA) reached €13.2 billion in the first quarter of 2026, according to a market report released May 8 by JLL. While the headline figure represents a 21% decline from the same period in 2025, that comparison is skewed by a €7 billion UK government housing purchase recorded in Q1 2025. Excluding that transaction, transactional volumes rose 37%, with private sector investment climbing 43%.

Private Investment Drives EMEA Living Sector Growth

JLL's data shows that 61% of transactional volumes in Q1 2026 fell in the €100 million-and-above deal size bracket, reflecting a continued trend toward larger transactions. This concentration was most pronounced in UK PBSA, while multifamily activity in Continental Europe also contributed to the outsized deal sizes.

Among individual markets, Finland and the Netherlands posted the highest year-on-year growth. JLL attributed Finland's performance to a pension investment reform and the Netherlands' gains to a reduction in real estate transfer tax (RETT) implemented at the start of 2026. Spain also saw increased activity, driven by further investment from Canadian pension funds, according to the report.

PBSA and Affordable Housing Lead Gains

Within the living sector, PBSA and affordable housing each more than doubled year-on-year, outpacing growth of 7% recorded in the multifamily category. JLL's report notes that forward investment — commitments to future development — more than doubled year-on-year.

Gemma Kendall, Head of EMEA living investment at JLL, said: "The continued expansion of investors into the Living market reflects the continued operational performance of Living and the increasing variety of sub-sectors, allowing alternative entry points and business plans offering attractive growth opportunities."

Emma Rosser, EMEA living research director at JLL, added: "Investors are ramping up transactions and fundraising for future growth, tailoring strategies to tenant demands. This includes providing new stock, with forward investment more than doubling year-on-year, overcoming challenges in construction."

Affordability and Construction Costs Weigh on Development

Despite the investment uptick, JLL's report highlights persistent headwinds for development across the region. Residential construction costs, while below recent peaks, remain elevated, constraining new supply. Declining building permits are expected to lead to further reductions in new housing, which JLL said underscores the need for continued private investment.

Affordability challenges are also shaping market dynamics, with rental growth slowing across many EMEA markets. Various governments are exploring additional rent regulations aimed at limiting tenant costs.

Methodology

JLL's Q1 2026 data covers direct, entity-level, and development transactions exceeding $5 million. Living sectors tracked include multifamily, single family, coliving, affordable housing, and worker housing.