News release

Living takes largest share of real estate investment in Europe

Investment in “beds” topped €10 billion in Q2 2023, as large deals pushed transactional volumes up 20% on Q1

August 09, 2023

Kathryn Greene

EMEA Communications Manager
+44 759 451 9626

London, 9 August 2023 – Investment in European living assets exceeded all other real estate assets classes in the second quarter at €10.6 billion, new figures from JLL reveal.

The combined sub-sectors of multifamily, student and healthcare accounted for 32% of €32.7bn direct real estate investment, excluding development and corporate acquisitions. This is the highest proportion since JLL began tracking the sector in 2006.

Total capital transacted in living rose 20% from Q1 levels of €8.7 billion after five consecutive quarters of declines in response to the rising cost of debt and uncertainty around pricing.

However, the number of deals fell slightly, down 3% from Q1 levels at 226 transactions recorded. This saw the average living deal jump from €37 million to €47 million, following a number of large deals in Germany. This included Vonovia’s sale of its 30% stake in its Südewo portfolio to Apollo for €1 billion and a portfolio of 1,350 flats to CBRE Investment Management for €560 million.

Multifamily accounted for 75% of investment from April to June, with healthcare at 14% and student housing making up 11%. The UK and Germany continued to attract the majority of investment, accounting for over half of Q2 volumes, at 29% and 24% of the total respectively.

In the UK, a combination of large student housing and single-family rental deals bolstered volumes. This included Citra Living’s €191m purchase of a regional portfolio from housebuilder Barratt Homes, with JLL advising the buyer.  Other key markets for Q2 dealmaking included Sweden and the Netherlands.

Activity remains muted following high inflation and regular rate rises from the European Central Bank. The investment of €19.4 billion in living assets from January to June is just under half the €40billion invested in the same period in 2022. While living declines have been lower than offices and industrials and logistics, year-on-year investment in in the first half is still 52% lower than the same period last year and 47% below the five-year average for H1.

Gemma Kendall, head of multifamily for EMEA at JLL, said: ““European living sector yields are beginning to stabilise, transactions are picking up, but we still have a way to go to return to historical investment trends. This period of lower dealmaking activity offers opportunity for equity investors able to take advantage of the short-term market challenges to acquire assets for the long-term.”

Emma Rosser, research director for EMEA at JLL, added: “The various living markets across Europe have continued to attract significant capital in the second quarter. Buyers are pursuing diversity in various living sub-sectors. This interest, underpinned by a fundamental undersupply, has driven the sector to account for the lion’s share of real estate investment this quarter, a long-term trend that we expect to continue.”

Visit our website to learn more about the living sector.

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit