Living Is Europe's Biggest Real Estate Sector: What It Means for Operators

Óscar Raynaud· Head of Living, UrbanPay9 Oct 20264 min

Living is now the largest real estate sector in Europe by deal volume, and it is staying there. CBRE reports that living attracted €29.9 billion in the first half of 2026, up 17% on the same period last year and 26% of all European real estate investment. Savills puts the living share of volume close to 30%. Different methods, same message.

For anyone running buildings rather than buying them, the more useful question is what this capital expects. That is where the operator's job is changing.

The numbers behind the headline

The momentum has been building for over a year:

2025: €59 billion was invested in European living, the strongest annual total since 2023, with the UK and Germany accounting for 66% of it.
Q2 2026: living was the most active sector for the third consecutive quarter, with around €15 billion transacted.
Investor intentions: in Cushman & Wakefield's survey, two thirds of institutional investors already allocate 20% or more of their portfolios to living, and 96% expect that to rise over five years.

Growth is also spreading geographically. CBRE notes sustained increases in Belgium, the Netherlands, Southern Europe and the Nordics. Spain was a standout, with real estate investment up 93% year on year in the first quarter and living the most active sector.

Where the capital is going

Build-to-rent and purpose-built student accommodation still lead investor interest. Appetite for affordable housing, single-family rental, cost-rental and coliving is growing as strategies broaden. CBRE also saw more large deals and platform sales in the first half of 2026 than it expected. Investors are buying operating businesses, not just buildings.

What the capital expects

The shift that matters most for operators is in where returns are supposed to come from. CBRE describes 2026 as income-led, with no broad yield compression. Cushman & Wakefield's respondents expect performance to come from rental growth and operational efficiency. In plain terms, the value has to be created in the building, every month.

That changes what makes an operator investable:

Proven income: occupancy, average rent and collections by asset, over time.
Operational efficiency: cost per unit and cost per turnover that improve as the portfolio grows.
Clean data: reporting that comes straight from operating systems and stands up in due diligence.
Compliance: resident verification, contract records and data protection at institutional standard.
Scalability: a model that can open the next building without rebuilding the back office.

The opportunity for operators

More capital chasing living assets means more mandates, joint ventures and management contracts for operators who can show these five things. The guide to raising capital for a living platform covers the routes to that capital. Operational due diligence covers how investors test the operator.

Where UrbanPay fits

Operational efficiency and clean data are where UrbanPay helps directly. Rent is collected by account-to-account payment and reconciled automatically to each unit and entity. Residents are verified with KYC and KYB, and contracts are signed with eIDAS-compliant e-signatures, all in one record an investor can review.

FAQ

How much was invested in European living real estate in 2026?

CBRE reports €29.9 billion in the first half of 2026, up 17% year on year and 26% of total European real estate investment.

Which living sub-sectors attract the most investment?

Build-to-rent and private rented housing, followed by purpose-built student accommodation, with growing interest in affordable housing, single-family rental and coliving.

Why are investors focused on operators in the living sector?

Because returns in 2026 are expected to come from income and operational efficiency rather than falling yields, so the operator's performance drives the investment result.

Talk to Óscar

If you run a coliving, flex living, student housing or build-to-rent operation and want to see how collection, verification and contract signing fit together on your volumes, book 20 minutes with me or write directly.

Book 20 minutes with Óscar · [email protected] · Contact UrbanPay