\u00a0<\/p>\n
Key Drivers Fuelling Resilience and Growth in Europe\u2019s Living Sector\u00a0<\/b><\/p>\n
1.\u00a0RISING COSTS, SHRINKING OPTIONS AND SHIFTING DEMOGRAPHICS<\/b><\/p>\n
Homeownership in Europe has become increasingly unaffordable, pushing more people towards rentals. From 2015 to 2023, house prices rose 48% across Europe, with the Netherlands, Germany, Spain, and France all seeing similar surges1. Housing supply has also lagged demand due to rising labour and raw material costs, regulatory hurdles, and planning delays.<\/p>\n
Against this backdrop, demand for flexible and lower-cost housings is growing. Coliving has emerged as a cost-effective, socially engaging option – often cheaper than renting a studio or one-bedroom flat, especially when shared utilities and amenities are considered2. It also helps address rising urban loneliness as household sizes shrink across Europe3.<\/p>\n
Between 2013 and 2023, the number of single-person households without children in the EU grew by 21%4, highlighting demand for housing that combines privacy with community. For many aged 25 to 59, coliving offers an appealing mix of affordability, convenience, and social connection in a changing urban landscape5.<\/p>\n
2. THE DIGITAL NOMAD BOOM<\/b><\/p>\n
The rise of remote work post-COVID has created a new generation of digital nomads who prefer extended international stays, fuelling demand for flexible, long-term accommodation. European cities make up over half of the top 10 destinations for digital nomads, including London, Berlin, Lisbon, Paris, Barcelona, and Amsterdam6.<\/p>\n
Increasing regulations on short-term rentals in key cities have reduced availability and affordability7. In response, serviced residences and coliving properties managed by professional operators have gained traction. These provide cost-effective extended stays with communal amenities, shared workspaces, and built-in social communities, especially attractive for newcomers seeking to build networks8.<\/p>\n
3. ADAPTING TO NEW TRAVELLER TRENDS AMID SOLID RECOVERY<\/b><\/p>\n
Tourism in Europe is rebounding strongly post-pandemic, with London and Paris among the world\u2019s top 10 most visited cities, drawing 21.7 million and 17.4 million international visitors in 20249 respectively.\u00a0Visitor spending in the EU hit \u20ac1.4 trillion in 2023, matching 2019 levels.\u00a0This surge has fuelled strong hotel performance, with occupancy. Europe\u2019s business travel spending is also expected to grow from \u20ac360 billion in 2024 to \u20ac561 billion by 202810.<\/p>\n
There is also the rise of \u201cbleisure\u201d travel – extending business trips with leisure days – is driving demand for longer-stay options like SR and coliving. European markets are already seeing longer average stays compared to 2019, led by the Netherlands with a 16% increase11 in trip lengths.<\/p>\n
4. GREATER DEMAND FOR STUDENT ACCOMMODATION\u00a0<\/b><\/p>\n
Europe\u2019s growing student population is boosting demand across PBSA, PRS, and coliving sectors.\u00a0Asian students form the largest international cohort, a trend likely to continue. As the United States (US) and Australia tighten student entry, continental Europe is poised to absorb redirected demand12.<\/p>\n
Investor interest in PBSA remains strong, with bed supply expected to grow 70% over the next 2-5 years13. Yet, supply remains critically short.\u00a0This PBSA shortage spills over into PRS and coliving, intensifying the supply-demand imbalance for traditional renters. Addressing the gap requires stronger government support to help private developers overcome financial and planning hurdles \u2013 targeted incentives and streamlined approvals are key to unlocking new supply14.<\/p>\n","protected":false},"excerpt":{"rendered":"\u00a0 Key Drivers Fuelling Resilience and Growth in Europe\u2019s Living Sector\u00a0 1.\u00a0RISING COSTS, SHRINKING OPTIONS AND SHIFTING DEMOGRAPHICS…\n","protected":false},"author":2,"featured_media":171669,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[71417,2000,299,5187,3619,71421,29321,2441,71418,71419,71420],"class_list":{"0":"post-171668","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-capitaland-investment","9":"tag-eu","10":"tag-europe","11":"tag-european","12":"tag-fund-management","13":"tag-international-newsroom","14":"tag-lodging","15":"tag-markets","16":"tag-perspectives","17":"tag-private-funds","18":"tag-sectors-asset-classes"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114656391346492550","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/171668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=171668"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/171668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/171669"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=171668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=171668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=171668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}