Investment Volume
The European residential investment volume reached €12.0bn in Q1 2026, an increase of 21.2% compared to Q1 2025. The increase in residential share to 25% of total real estate investment volume shows investors remain committed to the segment. The number of transactions has reduced, meaning the amounts deployed have been higher (including more portfolios have been transacted than last year). It suggests investors have moved quickly to seize the right large-scale opportunities, even with wider real estate market turbulence.
Residential Prices
Residential prices across European cities expanded on aggregate by +5.1% in Q4 2025 vs Q4 2024.
The average Euro area mortgage rate stood at 3.35% in Q1 2026, an increase of 3 bps y/y due to economic uncertainty. Persistent pressures on energy prices could influence inflation and the future mortgage rate path. Housing purchasing power therefore likely to remain limited.
Rents
Rental demand is still increasing, leading to rental growth at the European level of +3.9% y/y in Q4 2025.
All European cities (except Helsinki and Milan) experienced rental growth in Q4 2025. Madrid exhibited the strongest growth (12%), reflecting intense demand, especially from younger age groups.