What opportunities 2025 brings to European residential real estate

What opportunities 2025 brings to European residential real estate


The numbers are in, and they are challenging.

According to the European Real Estate Market Outlook 2025 report, the residential market reality is demanding but also full of opportunities.

Almost 10 million homes were missing just as we’ve been approaching 2025. Governments are willing to contribute to the change, but are very often caught between ambitious regulations and harsh reality.

This creates unique circumstances for anyone involved with the residential real estate market - let us go through what this means.

As a CGI studio working with all groups - developers, architects, broker agents - we see market shifts from a very specific perspective. Not in changing policies or press releases, but in changing of the design language of buildings, and the narrative our clients want to tell.

In this edition of The Inspiration, we talk about these learnings, but also showcase our latest projects in the residential sector. We’re very fortunate to work with partners that see the market changes and adjust the design, strategy, and execution to the evolving reality.

Scroll down to see the CGIs we’ve delivered to bring projects from Besqab and Lotshammar to life.

A deficit now equals 3,5 % of the continent’s total housing stock - almost 10 million homes are missing. Even though we’ve seen countries setting very ambitious building targets, if all ongoing constructions were to be completed, the output would only meet 64% of the need.

This is a wake-up call for all - with rising home and capital values expected to improve project profitability in 2025, this shift creates a great condition for a new wave of smart, targeted developments.

Source: click.

Rents are just growing way faster than wages, especially in bigger cities. But this pressure is pushing the industry to adapt. People are demanding more flexible renting conditions, better service, and smarter living solutions.

It’s also encouraging serious investments in built-to-rent housing, creating space for fresh models that prioritize accessibility, longevity, sustainability, and wellbeing. This is a clear chance for anyone who delivers great solutions - in a market this tight, quality becomes a competitive edge.

Source: click

A new generation of buyers and renters is reshaping residential expectations. They are not just looping for a place to sleep - the demand is for design-forward spaces, inclusive and thoughtful amenities, and a place that creates a sense of belonging.

From high-end developments to smart student housing projects, we’re seeing the rising demand for areas to connect, co-working zones, and places that allow for wellbeing to take the stage. For developers and designers, this is an open invitation to innovate and deliver.

Source: click.

Wellness, daylight, shared kitchen spaces, and more and more non-digital community features - it´s all becoming a non-negotiable. CGIs we’ve been delivering for the residential sector are a reflection of that.

Whenever we’re starting a new project with Besqab, we know we can anticipate a partner that’s very hands-on when it comes to following trends and market shifts in residential real estate.

One of the latest deliverables was CGIs for Fransyskan development in Stockholm.

Read more here.

One of the main key drivers in residential real estate is wellness and access to nature. We’ve been working on several projects that highlight these trends, among others, Besqab Hertha and Platån developments.

Read more here about Besqab's development, and here about Nordr Platån.

Lotsudden is a new residential development in Saltsjöbaden, offering 27 architect-designed homes with beautiful sea views.

Residents can enjoy amenities such as a local restaurant, a communal wine cellar, a sauna, and proximity to schools and playgrounds, and each home has the option to access private boat decks. The whole project blends architecture, great interior design, and natural surroundings.

Find out more here.