- Over 66% of global real estate markets are now in the “Buy” phase, the highest level in eight years.
- Central bank rate cuts and strengthening global growth are building up hope for a market recovery.
As global market fundamentals continue to improve, 66% of real estate markets have entered the “Buy” phase, signaling recovery and more opportunities in 2025.
As David Steinbach, Global Chief Investment Officer at Hines, states, “We’ll likely look back on 2025 as a pivotal moment of recovery.” Central bank rate cuts and improving market fundamentals are paving the way for renewed growth, while capital flows into real estate markets continue to strengthen.
Global Buyer’s Market
Hines Research reports that 66% of the 534 global real estate markets it tracks are now in some phase of the “Buy” cycle, the highest percentage since 2016. This recovery underscores higher investor confidence, supported by resilient demand in key sectors.
Trends Shaping 2025
- Demographic shifts: Aging populations in developed markets and rising urbanization in emerging economies are reshaping demand across sectors.
- AI and automation: Tech advancements are transforming industries and workplaces, opening opportunities for logistics, data centers, and modern offices.
- Decarbonization: A global push for sustainability is driving investment in green infrastructure, retrofitting buildings, and renewable energy projects.
These macro trends align with broader economic shifts, enhancing real estate’s resilience and long-term appeal as an asset class.
Private Market Opportunities
Private real estate markets are particularly well-positioned for growth in 2025. Institutional investors are capitalizing on favorable pricing in sectors such as industrial, multifamily, and life sciences while emerging markets offer high growth potential for value-add investments.
Looking Ahead
With global markets entering a pivotal phase, 2025 represents a critical year for investors to deploy some of their dry powder.
By focusing on high-growth sectors, adapting to macro trends, and aligning with sustainable practices, investors can capitalize on the many opportunities in this new era of recovery.
