\n<\/p>\n
Mordor Intelligence has published a new report on the\u00a0<\/span>Europe residential real estate\u00a0market<\/span><\/b>, offering a comprehensive analysis of trends, growth drivers, and future projections<\/span>\u00a0<\/span><\/p>\n Europe Residential Real Estate Market\u00a0Overview<\/span>\u00a0<\/span><\/p>\n According to Mordor Intelligence,<\/span>\u00a0the\u00a0<\/span>Europe\u00a0residential real estate market<\/span><\/b><\/a>\u00a0<\/span><\/b>is projected to grow from USD 2.9 trillion in 2026 to USD 3.86 trillion by 2031, registering a 5.88% CAGR during the forecast period. Structural housing undersupply, tightening vacancy in major cities, and policy-driven sustainability mandates are reshaping capital allocation across the region.<\/span>\u00a0<\/span>Demand continues to exceed supply in several large metropolitan areas due to lagging permits and delayed new starts. At the same time, energy compliance obligations under Directive (EU) 2024\/1275 and national transpositions are accelerating deep retrofit investments and influencing both pricing and portfolio strategies\u2014particularly in urban multifamily assets.<\/span>\u00a0<\/span><\/p>\n Investors are increasingly rotating into rental-led \u201cliving\u201d sectors as rental growth outpaces inflation in core metros, improving income visibility. Office-to-residential conversions are scaling to address carbon targets and supply deficits, while cross-border capital flows continue to support liquidity across key markets.<\/span>\u00a0<\/span><\/p>\n Growth Drivers\u00a0Shaping the\u00a0Europe Residential Real Estate Market<\/span><\/b>\u00a0<\/span><\/p>\n Institutional Shift Toward Purpose-Built Rental Communities<\/span><\/b>\u00a0<\/span><\/p>\n Institutional investors plan to deploy\u00a0approximately EUR\u00a0into European living assets over three years, with purpose-built student accommodation (PBSA) and multifamily assets leading allocations.\u00a0The June 2025 merger between\u00a0Aedifica\u00a0and\u00a0Cofinimmo\u00a0created the largest European REIT focused on healthcare and senior housing, underscoring the premium\u00a0investors\u00a0place on pan-European scale.\u00a0Lenders continue prioritizing multifamily, offering prime senior LTVs, reinforcing institutional dominance in professionally managed rental housing.<\/span>\u00a0<\/span><\/p>\n Urbanization and Single-Person Households Boost Multifamily Demand<\/span><\/b>\u00a0<\/span><\/p>\n Private rented tenure is expanding across continental Europe as net household formation outpaces housing completions. Germany\u2019s Top Seven cities recorded rental growth in early 2025, led by Leipzig and supported by rising rents in Berlin.\u00a0Operators are professionalizing asset management to reduce vacancy days and enhance NOI via digital leasing, maintenance tracking, and energy optimization platforms. These efficiency gains are helping offset rising capex requirements.<\/span>\u00a0<\/span><\/p>\n ECB Rate Hikes Widening Mortgage Affordability Gap<\/span><\/b>\u00a0<\/span><\/p>\n The European Central Bank\u2019s tightening cycle lifted policy rates to a 4.0% peak before easing. However, mortgage rates\u00a0remain\u00a0elevated\u00a0relative.\u00a0This dynamic is driving a bifurcation in the market: institutional rental platforms are capturing households priced out of ownership, while high-net-worth buyers rely on equity financing or intergenerational transfers.\u00a0Operators are professionalizing asset management to reduce vacancy days and enhance NOI via digital leasing, maintenance tracking, and energy optimization platforms. These efficiency gains are helping offset rising capex requirements.<\/span>\u00a0<\/span><\/p>\n Stricter EPC Rules Raising Landlord Capex<\/span><\/b>\u00a0<\/span><\/p>\n Energy compliance obligations\u00a0are accelerating\u00a0capital expenditure. Retrofit costs in urban multifamily buildings can range between EUR 20,000 and EUR 40,000 per apartment. Heat pump\u00a0installations alone\u00a0can cost EUR 12,000\u201320,000 per unit, according to the European Heat Pump Association.\u00a0France\u2019s phased bans on low-rated rentals, the Netherlands\u2019\u00a0minimum\u00a0label proposals,\u00a0and\u00a0These\u00a0measures are gradually shifting ownership from fragmented private landlords to institutional platforms capable of securing financing, negotiating bulk procurement contracts, and\u00a0leveraging\u00a0EU funding programs.<\/span>\u00a0<\/span><\/p>\n Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights:<\/span><\/b>https:\/\/www.mordorintelligence.com\/ja\/industry-reports\/residential-real-estate-market-in-europe?utm_source=emailwire<\/span><\/b><\/a>\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n Europe Residential Real Estate\u00a0Market\u00a0Segmentation\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n Explore Our Full Library of<\/span><\/b>\u00a0Real Estate and Construction Research\u00a0Reports:<\/span><\/b> Europe Residential Real Estate Market\u00a0Key Players<\/span><\/b>\u00a0<\/span><\/p>\n Explore more insights on\u00a0Europe residential real estate\u00a0competitive landscape:<\/span><\/b>\u00a0<\/span>https:\/\/www.mordorintelligence.com\/industry-reports\/residential-real-estate-market-in-europe\/companies?utm_source=emailwire<\/span><\/b><\/a>\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n Conclusion<\/span><\/b>\u00a0<\/span><\/p>\n The\u00a0Europe residential real estate market\u00a0remains\u00a0moderately competitive, characterized by large integrated platforms alongside a broad base of private landlords.\u00a0Strategic M&A activity and platform consolidation accelerated in 2025\u20132026, reflecting a premium on scale, ESG alignment, and operational efficiency. Digitalization, sustainability compliance, and cross-border capital participation are\u00a0emerging\u00a0as defining competitive differentiators.<\/span>\u00a0<\/span><\/p>\n As regulatory clarity improves and financing conditions gradually stabilize, the market is expected to\u00a0maintain\u00a0steady expansion through 2031, supported by structural undersupply, rental platform growth, and energy-transition investment cycles.<\/span>\u00a0<\/span><\/p>\n For more insights on\u00a0Europe residential real estate\u00a0market, please visit the Mordor Intelligence\u00a0page:\u00a0<\/span><\/b>\u00a0<\/span> Industry Related Reports:<\/span><\/b>\u00a0<\/span><\/p>\n North America Co-working\u00a0Spaces Market<\/span><\/b><\/a>\u00a0<\/span><\/p>\n The North America co-working spaces market was valued at USD 6.59 billion in 2025 and is projected to grow from USD 7.21 billion in 2026 to USD 11.31 billion by 2031, registering a CAGR of 9.42% during 2026\u20132031. Growth is driven by the rise of hybrid work models, increasing demand from startups and SMEs for flexible leases, and corporate adoption of shared office solutions to\u00a0optimize\u00a0real estate costs and enhance workforce agility.<\/span>\u00a0<\/span><\/p>\n South America Office Real Estate Market\u00a0Size<\/span><\/b><\/a>\u00a0<\/span><\/p>\n The South American office real estate market was valued at USD 94.78 billion in 2025 and is estimated to expand from USD 99.30 billion in 2026 to USD 126.35 billion by 2031, at a CAGR of 4.91% during the forecast period. Market growth is supported by urban business expansion, gradual economic recovery in key economies, and sustained demand for Grade A office spaces in major metropolitan hubs.<\/span>\u00a0<\/span><\/p>\n Asia-Pacific Office Real Estate Market\u00a0Share<\/span><\/b><\/a>\u00a0<\/span><\/p>\n The Asia-Pacific office real estate market is projected to grow from USD 391.07 billion in 2025 and USD 412.12 billion in 2026 to reach USD 535.61 billion by 2031, registering a CAGR of 5.38% between 2026 and 2031. Expansion is fueled by rapid urbanization, strong corporate leasing activity across emerging economies, and increasing investments in smart and sustainable commercial office developments.<\/span>\u00a0<\/span><\/p>\n About Mordor Intelligence:<\/span><\/b>\u00a0<\/span><\/p>\n Mordor Intelligence is a trusted partner for businesses\u00a0seeking\u00a0comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.<\/span>\u00a0<\/span><\/p>\n With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence\u00a0possesses\u00a0a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.<\/span>\u00a0<\/span><\/p>\n For any inquiries or to access the full report, please contact:<\/span>\u00a0<\/span><\/p>\n media@mordorintelligence.com<\/span><\/a>\n
\n
\nhttps:\/\/www.mordorintelligence.com\/market-analysis\/real-estate-and-construction?utm_source=emailwire<\/span><\/b><\/a>\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n\n
\n
\n
\n
\n
\nhttps:\/\/www.mordorintelligence.com\/industry-reports\/residential-real-estate-market-in-europe?utm_source=emailwire<\/span><\/b><\/a>\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n
\nhttps:\/\/www.mordorintelligence.com\/<\/span><\/a>\u00a0<\/span><\/p>\n