Short-term: Following a positive uptick in activity in the final quarter of 2024, living investment is expected to continue to increase throughout 2025 despite geopolitical turbulence and a more gradual central bank interest rate cutting cycle. Fundamentals remain strong in Europe and are likely to improve in the U.S. as new supply decreases further. With slowing new construction and robust investor sentiment larger platform deals are likely to become a more common feature of the market as we move through the year.

Long-term: Living investment activity will grow particularly strongly in established real estate markets where institutionally-owned income-driven housing models are still classified as emerging sectors. This includes the likes of Australia, Japan, the UK and France. Growth will also continue in the most established living markets such as the U.S., Canada and Germany, with investors increasingly targeting the full spectrum of living asset types and searching for operational and platform synergies.