Global Real Estate Resilience: $380 Billion Investment Momentum in H1 2025
The global real estate market has shown significant resilience with $380 billion invested in the first half of 2025, signaling emerging signs of recovery. Research by Savills highlighted a positive sentiment among buyers and sellers, greater price acceptance, and strength in occupational markets despite varied performance across different sectors such as commercial offices, living, and industrial/logistics.
Commercial Real Estate Trends
In Q2 of 2025, commercial real estate transactions reached $193 billion, slightly down 5% from the previous year’s quarter. However, commercial office deals increased by 12% to $45 billion globally, driven notably by a 50% surge in the U.S. market from a low base. Limited supply and low development levels in regions including the U.S., Europe, the Middle East, and Asia have eased earlier reservations around office investments, fueling rental market growth.
Living Sector Dynamics
The living sector transactions in Q2 totaled $58 billion, marking a 9% decline year-over-year. Still, a robust start to 2025 helped the sector grow nearly 8% by mid-year. A standout sub-sector was senior living, which saw an impressive 80% rise year-to-date in transactions, reaching $15 billion.
Industrial and Logistics Stability
The industrial and logistics sector experienced a 10% decline in Q2 with $42 billion in transactions. Yet, the sector maintained stability with three consecutive quarters of growth overall, tallying $86 billion in transaction volume for H1 2025, comparable to $87 billion in H1 2024.
This mixed yet promising performance reflects diverse fundamentals shaping each real estate segment globally, underscoring cautious optimism for recovery with sustained investment momentum across markets.
The outlook for global real estate in 2025 is cautiously optimistic, reflecting the sector's resilience amid ongoing economic and geopolitical uncertainties. While challenges such as fluctuating interest rates, inflation, and regional differences persist, real estate markets are showing positive momentum with stabilized prices and increased transaction activity. Investors are advised to focus on creativity and careful asset selection, prioritizing properties that meet evolving occupier demands and sustainability criteria. The continued strength in residential, logistics, and senior living sectors, alongside easing supply constraints, highlights opportunities for growth and value creation. Ultimately, navigating this dynamic landscape requires adaptability and strategic insight to capitalize on emerging trends and maximize returns in the coming year.