Credit: GRI InstituteShifting Investment Priorities in Europe’s Residential Markets - New GRI Report
Top takeaways from European real estate leaders at GRI Living Assets Europe 2025 on shifting investment and financing trends
August 20, 2025Real Estate
Written by Rory Hickman
As interest rates, debt availability, and investor priorities continue to shift, Europe’s residential and broader living assets markets are adapting to a new financial reality.
Across the region, investors are rebalancing portfolios in response to uneven economic performance, with some markets benefiting from policy stability while others contend with regulatory tightening.
Our latest report draws on the insights shared by top-tier real estate leaders at the recent GRI Living Assets Europe 2025 in London to reveal the key takeaways from their discussions about how capital is moving, where liquidity is tightening, and which strategies are proving their value.
A detailed look at the growing interest in European residential markets, focusing on cities including Berlin, Madrid, and London, where capital flows are increasing despite rising construction costs.
Institutional Interest & Portfolio Diversification
The shift towards residential real estate investments by large-scale institutional investors, with a particular emphasis on multi-family residential and purpose-built student accommodation (PBSA) as core segments.
Capital Flows & Financing Conditions
Increasing interest rates and evolving debt markets are impacting the availability of capital for European residential projects, including the return of core capital and the increasing role of local banks.
Alternative Financing Models
The rise of innovative funding models, such as public-private partnerships, hybrid financing structures, and creative equity solutions, helping developers navigate capital constraints and accelerate the development of key residential projects.
Investment Strategies & Market Dynamics
Explore the strategic adjustments institutional investors are making to diversify their portfolios to mitigate risk, focusing on value-add opportunities, build-to-rent (BTR) models, and stabilised assets.
Housing Affordability Challenges
The ongoing housing affordability crisis across key European markets, highlighting the disparity between income growth and rising real estate prices as demand for affordable housing solutions grows.
Along with the complete range of insights on the investment and financing scenario, the European Living Assets Outlook 2025/26 report also covers multi-family residential (MFR) investment strategies, PBSA growth, senior living and retirement housing, hybrid hospitality-residential developments, flexible leasing models, and sustainable and affordable housing solutions.
Download the full report below to access all of these insights, and more:
As interest rates, debt availability, and investor priorities continue to shift, Europe’s residential and broader living assets markets are adapting to a new financial reality.
Across the region, investors are rebalancing portfolios in response to uneven economic performance, with some markets benefiting from policy stability while others contend with regulatory tightening.
Our latest report draws on the insights shared by top-tier real estate leaders at the recent GRI Living Assets Europe 2025 in London to reveal the key takeaways from their discussions about how capital is moving, where liquidity is tightening, and which strategies are proving their value.
What’s inside the report?
Market-Specific Investment InsightsA detailed look at the growing interest in European residential markets, focusing on cities including Berlin, Madrid, and London, where capital flows are increasing despite rising construction costs.
Institutional Interest & Portfolio Diversification
The shift towards residential real estate investments by large-scale institutional investors, with a particular emphasis on multi-family residential and purpose-built student accommodation (PBSA) as core segments.
Top industry leaders gathered in London for GRI Living Assets Europe 2025 to assess the current investment climate in European residential real estate (GRI Institute)
Capital Flows & Financing Conditions
Increasing interest rates and evolving debt markets are impacting the availability of capital for European residential projects, including the return of core capital and the increasing role of local banks.
Alternative Financing Models
The rise of innovative funding models, such as public-private partnerships, hybrid financing structures, and creative equity solutions, helping developers navigate capital constraints and accelerate the development of key residential projects.
Investment Strategies & Market Dynamics
Explore the strategic adjustments institutional investors are making to diversify their portfolios to mitigate risk, focusing on value-add opportunities, build-to-rent (BTR) models, and stabilised assets.
Housing Affordability Challenges
The ongoing housing affordability crisis across key European markets, highlighting the disparity between income growth and rising real estate prices as demand for affordable housing solutions grows.
Along with the complete range of insights on the investment and financing scenario, the European Living Assets Outlook 2025/26 report also covers multi-family residential (MFR) investment strategies, PBSA growth, senior living and retirement housing, hybrid hospitality-residential developments, flexible leasing models, and sustainable and affordable housing solutions.
Download the full report below to access all of these insights, and more: