Investors increase exposure to residential real estate, with strong growth in institutional capital and greater focus on rental housing.
Source: Adobe Stock
Author: Redaction
Growth of European residential investment
Investment in residential real estate continues to strengthen as one of the main asset classes in the property sector. In 2025, the segment reached around 59,000 million euros, the highest value since 2023, confirming the growing interest in residential investment from institutional investors.
According to data from Cushman & Wakefield, residential investment is gaining weight in European portfolios, with two-thirds of investors already allocating more than 20% of their assets to this sector. In addition, 96% of respondents expect to increase exposure to residential investment by 2031, reinforcing a structural growth trend.
PRS and BTR lead investment strategies
In the current residential investment context, return stability remains the main attractiveness factor, highlighted by 74% of investors. This performance is supported by favourable demographic dynamics and consistent demand across different market segments.
The most sought-after residential investment strategies continue to be PRS (Private Rental Sector) and BTR (Build-to-Rent), followed by student accommodation (PBSA). At the same time, new forms of residential investment are emerging, such as affordable housing and co-living, which are gaining relevance in institutional portfolios.
Outlook for residential investment
Outlook for residential investment indicates continued growth, with investors expecting stability in interest rates and prime housing yields. In this scenario, sector performance will depend mainly on rental growth and operational efficiency of assets.
In 2026, PRS and BTR are expected to be the best-performing segments within residential investment, followed by PBSA. However, challenges remain such as limited opportunities, price misalignment and regulatory factors.
In Portugal, institutional residential investment remains limited, with student accommodation standing out due to strong demand and constrained supply. Growth in residential investment in the country may accelerate with new tax frameworks and increased international capital interest.
中文(简体)
Português
English
Français
Español
Deutsch
Nederlands
Русский
