Europe Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Residential Real Estate Market is segmented by Type (Condominiums and Apartments, Villas and Landed Houses) and Country (Germany, United Kingdom, France, and Rest of Europe). The report offers market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

residential real estate market in europe
Study Period: 2018-2027
Base Year: 2021
CAGR: 9 %

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Market Overview

Europe's residential real estate market is expected to grow at a CAGR of 9% during the forecast period.

After more than two years since the first major outbreak of the Covid-19 pandemic and the subsequent economic downturn in European countries, the impacts have been different from those of the global financial crisis of 2008–2010.

For 2022, experts expect real estate to continue to be a focus for investment. Market experts believe the upward trend will continue and are confident it will be widespread. The recovery has been supported by the low-interest rate environment and strong economic growth. This has bolstered investor confidence, but rising inflation and the continued emergence of Covid-19 variants remain challenges. Following record results in the Multifamily sector, investors' appetite is anticipated to increase for these asset classes in 2022, and the office recovery is well underway.

From a pricing point of view, despite the general uncertainty surrounding the economy, residential markets experienced at least slight growth in most cases. An assumption that the real estate market is attractive during downturns proved to be correct, as many countries reported unprecedented demand for new housing shortly after the strictest lockdowns. Moreover, this trend is expected to continue throughout 2022, which may support further price growth.

Scope of the report

Residential real estate is an area developed for people to live on and cannot be used for commercial or industrial purposes. It emerges when land sanctioned for residential use is purchased by someone, which becomes real property and encompasses a large variety of potential dwellings, from houses to houseboats, and from neighborhood types ranging from the poorest slum to the wealthiest suburban subdivision. The report provides key insights into the European residential real estate market. It includes technological developments, trends, and initiatives taken by the government in the residential real estate sector. Also, the report offers an understanding of the key trends in the market, like factors driving the market, restraints to market growth, and opportunities for the market. Additionally, the competitive landscape of the European residential real estate market is depicted through the profiles of the key players in the market.

Europe Residential Real Estate Market is segmented by Type (Condominiums and Apartments, Villas and Landed Houses) and Country (Germany, United Kingdom, France, and Rest of Europe). The report offers market size and forecasts for the Europe Residential Real Estate Market in value (USD billion) for all the above segments.

The report also discusses the short-term and long-term impact of Covid-19 on the European residential real estate market.

By Type
Condominiums and Apartments
Villas and Landed Houses
By Countries
United Kingdom
Rest of Europe

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Key Market Trends

Growth in transaction prices of new dwellings

Despite the continuous convergence of European economies and close interconnections, each country's residential markets develop independently. For the first time, Austria took a leading position as the most expensive country in 2020 with a price tag of 4,457 EUR/sqm, only 36 EUR ahead of France with 4,421 EUR/sqm. The average price of over 4,000 EUR was recorded in three other countries last year – Germany, the United Kingdom, and Israel.

Norway could join this group in 2022, as prices stood at 3,956 EUR/sqm in 2020. However, it is important to mention that data for Norway include prices for detached houses only, as no other transactional information was available.

The other side of the price spectrum is dominated by Bulgaria, with an average transaction price for a new dwelling of 578 EUR/sqm, which increased by some 5% year-on-year. Bosnia and Herzegovina is the other country to remain below the 1,000 EUR/sqm price level, averaging 881 EUR/sqm.

 residential property management in europe

Capital Cities Lead the Rental market

Rental housing forms a vital part of the residential market, and therefore we would like to keep providing the general market with relevant information about rental markets across Europe.

After one year's pause at the position of the most expensive city in our selection, Paris is leading the pack again with 28.6 EUR/sqm/ month. Rents of over 20 EUR/sqm/month were only found in two other cities – London (26.1 EUR) and Oslo (24.7 EUR).

Capital cities are usually the least affordable in every country. There are, however, several cities that prove otherwise: Trondheim (19.6 EUR/sqm/month), Munich (16.8 EUR/sqm), Barcelona (16.7 EUR/sqm), Tel Aviv (14.3 EUR/sqm), Frankfurt (13.3 EUR/sqm), Hamburg (11.2 EUR/sqm) and Linz (10.0 EUR/sqm).

The Polish capital Warsaw is the most expensive among central European countries, with a 15.1 EUR/sqm/month rental price. It is followed by Prague (11.5 EUR/sqm) and Bratislava (10.7 EUR/sqm). This year, Budapest, with 9.76 EUR/sqm, is cheaper in rental housing than both regional cities of Gdańsk (9.80 EUR/sqm) and Brno (9.79 EUR/sqm).

european housing market

Competitive Landscape

There is a huge competition between the residential real estate companies in Europe. A few players dominate the market. The sales proportion of residential real estate properties through online channels has consistently grown, owing to the rising internet penetration, growing demand, increasing personal disposable incomes, surging middle-class youth population, and opportunities offered by government infrastructure investments.

Major real estate players in the market are Elm Group, Places for People Group Limited, LEG Immobilien AG, Consus Real Estate AG, and CPI Property Group.

Recent Developments

February 2022: The provision of affordable housing in South Shields has been boosted following a partnership between Places for People and Adderstone Living Limited to deliver 69 affordable homes, as planning permission has been granted. The development will deliver a range of two, three, and four-bedroom homes available for local people through affordable rent. Construction will commence imminently, with the completion of the first homes expected in early 2023.

January 2022: Instone Real Estate, one of the leading residential developers in Germany, is continuing its successful cooperation with LEG with the sale of around 330 apartments. The transaction includes 96 privately financed rental apartments on the west. side site in Bonn-Endenich. In addition, a further 236 rental apartments in the Literature Quarter in Essen – 52 of which are publicly funded and 184 privately financed – are part of the apartment package that LEG Solution acquired as part of a forward deal for the existing LEG companies. It was agreed not to disclose the purchase price.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Economic Scenario and Consumer Sentiment

    2. 4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 4.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector

    4. 4.4 Insights into the Size of Real Estate Lending and Loan-to-value Trends

    5. 4.5 Insights into the Interest Rates for the General Economy and Real Estate Lending

    6. 4.6 Insights into the Rental Yields in the Residential Real Estate Sector

    7. 4.7 Insights into the Capital Market Penetration and REIT Presence in the Residential Real Estate Sector

    8. 4.8 Insights into the Support Provided by the Government and Public-Private Partnerships for Affordable Housing

    9. 4.9 Insights into the Tech and Startups Active in the Real Estate Sector (Broking, Social Media, Facility Management, and Property Management)

    10. 4.10 Impact of COVID-19 on the Market


    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry


    1. 6.1 By Type

      1. 6.1.1 Condominiums and Apartments

      2. 6.1.2 Villas and Landed Houses

    2. 6.2 By Countries

      1. 6.2.1 Germany

      2. 6.2.2 United Kingdom

      3. 6.2.3 France

      4. 6.2.4 Rest of Europe


    1. 7.1 Overview

    2. 7.2 Company Profiles

      1. 7.2.1 Elm Group

      2. 7.2.2 Places for People Group Limited

      3. 7.2.3 LEG Immobilien AG

      4. 7.2.4 Consus Real Estate AG

      5. 7.2.5 CPI Property Group

      6. 7.2.6 Aroundtown Property Holdings

      7. 7.2.7 Segro

      8. 7.2.8 Covivio

      9. 7.2.9 Unibail-Rodamco

      10. 7.2.10 Gecina*

    3. *List Not Exhaustive

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)

    2. 9.2 Key Production, Consumption,Exports & import statistics of construction Materials

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Frequently Asked Questions

The Europe Residential Real Estate Market market is studied from 2018 - 2027.

The Europe Residential Real Estate Market is growing at a CAGR of 9% over the next 5 years.

Elm Group, Places for People Group Limited, LEG Immobilien AG, Consus Real Estate AG, CPI Property Group are the major companies operating in Europe Residential Real Estate Market.

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