European Living Capital Markets Growth & Opportunity

Private renting is the fastest growing tenure in Europe, having grown by 14% over the past decade to 53 million households in the UK and EU countries. This compares to growth of just 5% in homeownership and a decline of 1% in social housing, amid high costs in buying and limited government subsidy for public housing.

At just 5.3 million multifamily and single family homes, institutional ownership forms the minority. Purpose-built student housing (PBSA), later living, care homes and coliving brings this to 7.4 million, still a small portion of the region’s housing with significant scope for growth. Demand for private renting in the UK and EU will call for at least 3.6 million additional homes over the next decade, with further supply needed to support the rapid increase in students and ageing populations.

Investment in European living has been gaining pace, proving resilient through macroeconomic challenges. Living has grown as a share of real estate investment, matching offices at 26% of the total. Values are underpinned by operational strength, an undersupply of homes and recent record fundraising. Continued growth of the sector will be supported by strategic development partnerships and a range of global capital.