Global Living Sector on Track to Reach Pre-Covid Investment Levels by 2025

Global Living Sector Investment Nears Pre-Covid Levels by 2025

According to recent analyses by JLL, the global living real estate sector is projected to regain its pre-Covid investment volumes by 2025. The data indicates a robust recovery, highlighting the potential for significant growth in key regions, including the U.S., Europe, and Asia Pacific. Notably, the U.S. has marked its highest deal activity in Q3 2025, driven by a resurgence in investor confidence and a resurgence in consumer spending. Meanwhile, Europe and Asia Pacific have shown strong demands, particularly in sectors like purpose-built student accommodation (PBSA).

Despite these promising figures, some challenges persist. In Europe, apartment construction constraints could potentially hinder the sector's recovery trajectory. Similarly, the U.S. is experiencing a slowdown in rental demand. However, the living sector remains the largest real estate investment category globally, underscoring its resilience and appeal to investors.

U.S. Real Estate Market Shows Strong Recovery Signs

The U.S. real estate market is exhibiting a strong recovery, as detailed in the CBRE U.S. Real Estate Market Outlook 2025. The outlook anticipates a 10% increase in investment activity in 2025, fueled by economic growth and consumer spending. The multifamily sector, in particular, is expected to see rising occupancy and rents, reflecting the ongoing appeal of residential investments.

While new supply might challenge the rental market, the overall sentiment remains positive, with stabilization in office vacancy rates and the lowest vacancy rates in the retail sector. Such dynamics indicate a balanced growth pattern, essential for sustaining long-term investment returns in the living sector.

European Market Benefits from Policy Shifts and Growth Prospects

According to the CBRE European Real Estate Market Outlook 2025, Europe's real estate market is on track for a gradual recovery. Investment volumes are projected to grow by 23% in 2025, reaching €214 billion. This growth is significantly supported by policy shifts towards growth-oriented strategies, emphasizing sustainability and urbanization trends.

However, capacity bottlenecks in the living sector, including data centers, present potential risks. The report highlights convergence in buyer and seller expectations, which could catalyze further investment activity across the continent, particularly within the living sector.

Asia Pacific Continues to Attract Investments Amidst Economic Growth

The Asia Pacific region remains a significant player in the global real estate investment landscape. Recent figures from JLL reveal that commercial real estate investment volumes reached US$39.5 billion in Q3 2025, marking a 2% year-over-year increase. This growth is attributed to the region's robust economic performance and increasing demand for alternative real estate investments like PBSA.

The year-to-date volume stands at US$106.6 billion, demonstrating an 11% increase compared to the same period in 2024. With office assets dominating the investment landscape, the region's commitment to infrastructure and urban development continues to make it an attractive destination for investors.

Private Equity Investment in Real Estate Gains Momentum

Private equity investment in real estate is anticipated to rise in 2025, with firms like Blackstone leading the charge. According to reports, private equity funds have accumulated over $350 billion in dry powder globally. A resurgence in confidence, particularly in the second half of 2025, is expected to drive significant capital inflows into the market.

Private equity funds have accumulated over $350 billion in dry powder globally.

Private equity firms are increasingly interested in alternative sectors such as data centers, student housing, and healthcare, which are experiencing growing demand and offer lucrative opportunities for high returns. This trend underscores the diversifying investment strategies being adopted in the real estate sector.

Future Implications for Global Real Estate Investors

The projections for 2025 indicate a promising future for the global living real estate sector, despite existing challenges. The anticipated return to pre-Covid investment levels represents a milestone in the sector's recovery journey. For investors, this signals a period of strategic opportunity, where careful consideration of market dynamics and regional variations will be crucial.

As the market evolves, investment strategies will need to adapt to factors such as sustainability demands, demographic shifts, and technological advancements. According to RealEstateAbroad.com analysis, savvy investors will focus on emerging trends and leverage data-driven insights to maximize returns and navigate potential risks effectively.