A similar dynamic is emerging across Europe and Asia Pacific. 

Nabil Mabed, Head of European Value-add Equity, Real Estate, pointed to investments in care home operators and the creation of a greenfield micro-living platform in Germany as examples of how operational capability increasingly sits at the heart of the investment process. Rather than simply acquiring assets, investors are building platforms capable of creating and managing the right product for changing demographic needs. 

In Asia Pacific, David Fassbender, Head of Asia Pacific, Real Estate, highlighted that operational excellence also requires careful branding, particularly when launching into markets where operating models are still evolving. That means drawing on teams on the ground with deep local market knowledge, while also harnessing a manager’s scaled global experience. 

Turning data into value

The way technology is changing how investors create value across living assets cannot be ignored. Managing residents, leases, maintenance and service interactions generates vast amounts of operational data, creating opportunities to improve decision-making, increase efficiency and enhance resident outcomes.  

David Fassbender, Head of Asia Pacific, Real Estate, described living as one of the richest real estate sectors in which data can be put to work. Investors are using data intelligence to optimise leasing, enhance portfolio management and streamline day-to-day operations. Automation can simplify everything from tenant onboarding to lease administration and resident communications. 

For Nabil Mabed, Head of European Value-add Equity, Real Estate, one of living's historic challenges has been the gap between rental growth and net operating yields, largely driven by labour and operating expenses. Automation, technology and AI have the potential to narrow that gap and improve long-term portfolio economics. 

In senior living, the benefits extend beyond operational efficiency.  

Reigle highlighted innovations such as AI-enabled fall detection systems, robotics-assisted medication delivery and monitoring tools that can improve response times while supporting staff efficiency. The result is better quality of care, improved staff efficiency and stronger property-level performance.  

New solutions for an affordability challenge

The next generation of opportunities 

While the structural drivers are shared, the next phase of growth is likely to play out differently across regions.  

In Asia Pacific, institutional build-to-rent markets remain relatively early in their development outside Japan. Australia and South Korea are expected to expand further, while senior housing and specialised residential sectors continue to mature. 

In Europe, housing shortages, changing household formation and demographic pressures continue to rapidly reshape demand patterns. 

From micro-living and build-to-rent to senior housing and conversion projects, investors are expanding the supply of professionally managed rental housing. 

Meanwhile, Ireland's evolving regulatory environment and Poland's strong economic growth profile are growth markets that are attracting increasing attention. In contrast, David Fassbender, Head of Asia Pacific, Real Estate, noted that Asia Pacific investors currently see stronger risk-adjusted opportunities in developed markets than in emerging economies.