The European residential real estate sector is regaining momentum, driven by improved performance, growing institutional interest, and a more stable macroeconomic environment. According to a Cushman & Wakefield survey, 2025 saw the best performance since 2023, with investments hitting 59 billion euros. Investors are increasingly prioritizing residential assets, with 96% planning to increase their exposure over the next five years. Stability of returns remains the primary draw, particularly in private rental, build-to-rent, and student housing. Germany, Spain, and the UK remain the most attractive markets, while sustainability continues to be a central pillar of investment strategies. In Portugal, student housing shows strong fundamentals, and the build-to-rent segment is expected to grow following recent fiscal adjustments. Meanwhile, commercial real estate investment rose 17% to 2.9 billion in 2025.