A Global Pivot to “Living” Sectors: Purpose-Built Rental, Student Housing and Senior Living Expand

Real-estate investors are increasingly shifting focus from offices and generic commercial properties into what the industry calls “living sectors” – purpose-built rental housing, student accommodation and senior-living communities. These segments are gathering momentum worldwide not merely because they are lower risk in a high-interest-rate environment but because they meet structural demand shifts that few other asset classes can claim. For Mymland, this pivot is meaningful: it indicates where capital may flow, which product types will perform and how developers must rethink the housing and lifestyle offers they bring to market.

In the last few quarters, multiple studies and market updates have flagged the living sector as resilient. For example, the global “Living Investment Universe 2025” report by JLL found that between 2014-2024 some 6.5 million purpose-built rental units were delivered across 15 major markets. Another recent survey from CBRE into senior housing and care found that nearly two-thirds of respondents expect cap rates to compress over the next twelve months as investor demand remains strong. These patterns highlight that living assets are now core, not niche.

Why living-sectors are gaining global traction

Several interlocking trends are driving the surge in investment into living sectors globally. First, demographic and lifestyle changes continue to reshape housing demand. Younger generations increasingly favour flexibility, mobility, and renting rather than owning, while societies in advanced markets are ageing rapidly, increasing the need for senior-oriented housing with services. The “Modern Living” destination report from Nord LB lays this out clearly: student housing, serviced apartments, co-living, micro-living and senior living are all rising forms of living product because they align with the ways people live today.

Second, under-supply in many international markets means renters outnumber available units, which gives operators and investors the upper hand. JLL’s data shows that in “Living 15” markets nine countries failed to meet their housing‐target build rates in 2024, achieving only 60-75% of planned supply. Third, and crucially in a high-rate world, living assets often generate stable cash flows and shorter lease turnovers compared with more cycle-sensitive offices. That makes them more attractive when leveraged capital is costlier and investors are seeking durability.

Purpose-built rentals: scale, stability and operational advantage

Purpose-built rental (PBR) is emerging as one of the most scalable living subsectors. Unlike single-family homes or converted apartments, PBR developments are designed from the outset for renting – with amenity packages, professional management and capital structure built accordingly. A white-paper on “Build-to-Rent 2025” outlines how this model delivers higher tenant retention, consistent income streams and long-term capital preservation.

From an investment perspective, purpose-built rentals offer several advantages in the current climate. They allow developers to lock in longer-term contracts, attract institutional financing and benefit from economies of scale in maintenance and operations. For markets like Malaysia and Southeast Asia more broadly, where home-ownership remains high but affordability is stretched, PBR presents an alternative.

Despite higher construction costs, the demand side remains strong. Tight rental markets and elevated home-purchase prices push households into renting for longer. The Canada Mortgage and Housing Corporation flagged this for the Canadian market in 2025, but the logic applies globally: fewer homeowners translates into more stable renters and longer time-in-asset – a positive for investors. 

Student accommodation: demographic tailwinds meet institutional capital

Student housing has traditionally been a specialist niche-asset class. But change is afoot. Surveys show institutional investors increasing their allocations into PBSA (purpose-built student accommodation). A recent report by McKinsey argues that real-estate companies that align with student and university needs can build long-term partnerships and resilient cash flows. 

For example, according to a March 2025 market update, student housing rents in the US averaged approximately US $1,111 per bed with high pre-leasing rates in many markets, despite a slowdown in enrollment growth in some universities. Moreover, investor appetite remains strong: the CBRE student-housing survey shows increasing deal volume despite global rate pressures. 

What makes this especially relevant for Mymland is that student housing is increasingly international. With more cross-border enrolments, global universities and digital-native students, the demand for modern accommodation near campus or in urban nodes is rising. Developers who can deliver well-designed, amenity-rich accommodation near major educational hubs will capture both yield and growth.

Senior living: ageing societies and structural demand

While student housing often attracts younger investors, senior living appeals to a different demographic shift altogether: ageing societies. The senior-housing sector is benefiting from longer lifespans, better health services and a growing preference among older households for service-oriented living rather than traditional assisted-care models. CBRE’s H1 2025 survey found that 63 % of respondents expect cap rates in senior housing to compress over the next year. This signals investor confidence.

Senior living also blends accommodation with care, wellness and community – meaning that operators and developers can command premium rents for environments that deliver more than a simple apartment. Given Mymland’s experience in mixed-use development and community-focused projects, senior living offers a logical extension: master planned communities that cater not just to dwellers but to their lifestyle, health-care and social needs.

Putting the “living” sectors in the capital-markets context

In a world where interest rates are higher than they have been in a decade and borrowing costs remain elevated, real-estate investors are re-thinking where they place capital. Traditional office and retail assets face headwinds: hybrid work reduces demand for office space; e-commerce transforms retail; rising credit costs compress yields. In contrast, living sectors combine structural tailwinds with operational resilience. As Deloitte notes in its real-estate outlook, the return-profile for real estate in 2025 will favour sectors where use-case, demographics and affordability intersect.

Moreover, living assets align with larger ESG and social-impact themes. Affordable and well-managed rental housing, student accommodation and senior communities all contribute to social infrastructure, address housing-supply gaps and serve growing parts of the population. That makes them more attractive to funds with non-financial mandates and may open access to alternative capital channels.

Capital-markets outcomes reflect this. Some recent sources show living-sector investment volumes increasing even as broader real-estate volumes remain subdued. For Mymland, which sits at the development interface, the message is clear: design products with investor-friendly lease structures, strong operational partners, and clear demographic value. That will unlock capital in a tighter funding environment.

What this means for Mymland

For Mymland, this global pivot to living-sectors is both an opportunity and a strategic inflection. On the opportunity side, your next generation of developments can incorporate purpose-built rental components, student-housing assets near educational clusters or senior-living communities as part of master-planned precincts. These product types are already attracting global investor interest, scoring favorably versus more traditional apartments or mixed-use that rely purely on ownership models.

Strategically, this means the company may revisit how product mix is designed, which partners you engage and how you position the asset in capital markets. A development that combines delivery of modern living stock with strong amenities, good management and a clear demographic proposition will appeal to institutional capital hunting for yield in living-sectors. Furthermore, framing a project as “living-ready” rather than just “residential” could materially impact valuation, investor interest and exit options.

Finally, operationally Mymland should think about the lifecycle of these assets: longer leases, fewer turnover costs, service-oriented living frameworks, integration with technology and management platforms that deliver resident experience and institutional-grade operations. By being early in this pivot you’ll be better placed in a market where offices may struggle but living continues to expand.