Europe Residential Real Estate Market Forecasts USD 2.04 Trillion in 2025; Set to Grow to USD 2.54 Trillion by 2030, Led by Rentals, Affordable Housing, and Urban Apartments

Mordor Intelligence has published a new report on the Europe Residential Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Europe Residential Real Estate Market Overview

A new report from Mordor Intelligence reveals that the Europe residential real estate market is projected to reach USD 2.04 trillion by 2025, climbing to USD 2.54 trillion by 2030, with a 4.5 % compound annual growth rate (CAGR) during 2025-2030. That forecast builds on a base value of USD 1.95 trillion in 2024, projecting continued expansion across various segments.

The market breakdown includes residential segments by property type apartments & condominiums and villas & landed houses by price band (affordable, mid-market, luxury), mode of sale (primary vs. secondary), business model (sales vs. rental), and key countries such as Germany, the UK, France, Spain, Italy, the Netherlands, Sweden, Denmark, Norway, and the rest of Europe.

Report Overview: https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-europe

Key Trends

Rental Demand Surges

Although sales made up about 67 % of the market in 2024, forecasts show the rental model growing fastest, with a 6.07 % CAGR through 2030. Institutional investors-from pension funds to insurers are pushing into purpose-built rental developments, attracted by steady income and easier management.

Affordable Housing Gains Ground

Mid-market properties represented 46 % of market size in 2024, but affordable housing is rising more quickly, with a 5.90 % CAGR. Public-private initiatives and incentives under EU frameworks are fueling new affordable supply, meeting demand for budget-friendly, well-located units.

Apartments outpace Villas

While villas and landed houses held 65 % of the market share in 2024, the apartments & condominiums segment is expanding faster, forecasted at 5.96 % CAGR until 2030. As urban populations grow and land becomes scarce, high-density living is becoming more prominent.

Primary Market Strengthens

Secondary transactions trade of existing properties account for 90 % of transactions in 2024, but primary sales (new-build) are expected to grow at 6.00 % annually through 2030. Governments are accelerating approvals to ease tight housing supply and update energy efficiency in line with green standards.

Country-level Highlights

Germany holds 22 % market share in 2024, with residential value reaching approximately USD 384 billion in 2025 and growing at a 3 %+ CAGR to reach USD 447 billion by 2030.

United Kingdom's residential sector is projected to reach USD 381 billion in 2025, climbing to USD 504 billion by 2030 with a 5.75 % CAGR.

Spain is forecast at USD 177 billion in 2025, growing to USD 248 billion by 2030 at a 6.9 % CAGR.

France is expected to reach USD 528 billion in 2025, increasing to USD 698 billion by 2030, achieving a 5.92 % CAGR.

Market Segmentation

By Property Type

Apartments & Condominiums: Estimated to grow at 5.96 % CAGR to 2030; supported by urban densification.

Villas & Landed Houses: Dominated 65 % of the market in 2024; steady demand from affluent buyers remains.

By Price Band

Affordable Homes: Growing fastest in price band category with 5.90 % CAGR, underpinned by policies and partnerships.

Mid‐Market: Held 46 % share in 2024; the bulk of middle-income demand.

Luxury Segment: Expected to rise from USD 131 billion (2025) to USD 160 billion (2030) at 4 % CAGR.

By Business Model

Sales Model: Accounted for 67 % of market revenue in 2024; still the main driver but growing slower.

Rental Model: The fastest rising model, forecast to expand 6.07 % annually through 2030.

By Mode of Sale

Secondary Sales: Made up 90 % of market in 2024; reflects large existing housing stock.

Primary Sales: New build market growing at 6 % CAGR, supported by green building rules and urban renewal.

By Country

Germany: USD 384 billion in 2025, with 3 %+ growth.

UK: USD 381 billion (2025), climbing at 5.75 % CAGR.

France: Expected to rise from USD 528 billion to USD 698 billion by 2030 at 5.92 % CAGR.

Spain: Set to grow at 6.9 % CAGR.

Others: Netherlands fastest-growing overall Europe market (~6.14 % CAGR).

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Key Players

The Europe residential real estate market features a mix of major developers and investment firms with strong positions in both rental and development sectors:

Elm Group - Recognized for significant holdings across critical European cities, Elm Group has shown agility in expanding its presence in high-demand housing markets.

Places for People Group Limited - A leading provider of residential properties in the UK, the group continues to respond quickly to market demand, especially in affordable and mid-market segments.

LEG Immobilien AG - Based in Germany, this firm focuses on large-scale residential developments, particularly in rental housing, and is active in urban regeneration projects.

Consus Real Estate AG - Known for its development-led approach in Germany, Consus brings modern housing projects to the market, with growing recognition in urban areas.

CPI Property Group - Operating across Central Europe, CPI engages in both mixed-use and residential developments, with a record of steady project delivery.

Conclusion

Europe's residential real estate market is on a steady growth path, supported by rising demand for rentals, increasing focus on affordable housing, and a shift toward apartment living in urban areas. New developments are helping ease supply pressures, especially in major countries like Germany, the UK, France, and Spain.

With a balanced mix of rental and ownership models, and growing interest across income levels, the market is well-positioned to meet changing housing needs while maintaining long-term stability.

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To know more visit this link: https://www.mordorintelligence.com/industry-reports/oman-luxury-residential-real-estate-market

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To know more visit this link: https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-turkey

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