Investment Volume
The European residential investment volume reached €27.3bn in H1 2026, an increase of 32% compared to H1 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. It also 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 +4.5% in Q1 2026 vs Q1 2025.
While the average Euro area mortgage rate increased to 3.51% in Q2 2026, an increase of 21 bps y/y which will further deteriorate the borrowing environment.
Rents
Demand is still increasing, leading to rental growth at the European level of +3.4% y/y in Q1 2026.
Most European cities experienced rent growth in Q1 2026. Oslo exhibited the strongest growth (+14% y/y), reflecting intense demand particularly from younger age groups (student and young professional). The other push comes from ownership costs, that remain high after several years of high interest rates discouraging purchase.