Savills Investor Survey finds rising interest in single family, co-living, senior living and care homes across Europe
According to the fourth annual investor survey conducted by international real estate advisor Savills, and Savills Investment Management, involving investors who collectively hold €540bn in real estate assets under management (AuM), Purpose Built Student Accommodation (PBSA) remains the most sought-after sector in Operational Real Estate (OpRE) for the second consecutive year.
However, there has been a further rise in investors looking to target single family, co-living, senior living and care homes, pointing to the ongoing maturation of those sectors in recent years.
In terms of specific Operational Real Estate (OpRE), the highest priorities for investors are:
- PBSA – 58% (63% average across Savills 2023-2025 surveys)
- Multifamily – 52% (71%)
- Single Family – 52% (44%)
- Co-Living – 50% (42%)
- Senior Living – 42% (37%)
- Care Homes – 42% (25%)
Investor appetite has also increased across the hotel sector, led by serviced apartments (aparthotels), with interest increasing from 27% to 33% year-on-year.
From a geographic perspective, the UK and Ireland, followed by the DACH region (Germany, Austria and Switzerland) and Southern Europe (Italy, Spain, Portugal) are the highest priority markets for investors over the next three years. Some 16% of investors are also pursuing a pan-European strategy, in line with findings from last year.
When asked about their preferred routes to market, over half of respondents (58%) had a preference for direct private market investment or joint ventures. However, 2026 saw a resurgence in investor appetite for accessing OpRE sectors through funds, with 23% of respondents listing these as their preferred route, compared with only 8% in 2025. The increase in investors looking to utilise funds will further support fundraising activities in 2026, allowing investors to gain exposure to OpRE sectors without having to set up the infrastructure required to manage and operate direct investments.
Marcus Roberts, head of Europe – Savills Operational Capital Markets, says: “Our survey respondents are looking to invest c.€45bn over the next three years alone across the OpRE sectors, with most expecting 2027 to be the year they are most active in that period. Following a challenging few years for fundraising, investors are more optimistic about the coming 12 months and expect to see conditions improve, with value-add and core-plus strategies being seen as the easiest to raise capital for.”
Harry de Ferry Foster, head of UK, Savills Investment Management, says: “Improving investor sentiment is an encouraging sign that capital is gradually returning to European real estate. Appetite remains uneven across sectors and geographies, however, underscoring the importance of disciplined stock selection even in more resilient OpRE categories and demand for active asset management capabilities in what has become an income-led, fundamentals-driven investment cycle.”
Richard Valentine-Selsey, head of European Living Research & Consultancy at Savills, says: “Investment into the OpRE sectors across Europe has accounted for a growing share of total investment since 2022, rising from 30% to 38%. In 2026, close to two-fifths of respondents expect to increase their allocations further over the next three years.”