Many central banks around the world are cutting interest rates, which could help the economy.
At the same time, the global economy is getting stronger, and there are new changes happening in the world, like the rise of artificial intelligence (AI) and a focus on making things better for the planet.
These changes could create new opportunities to invest in real estate in 2025.
Let’s take a look at why we think 2025 could be a big year for commercial real estate!
6 Reasons Why 2025 Could Be a Great Year for Real Estate Investment
- We’re in a “buy” cycle Around 66% of global markets are in a “buy” cycle, which is the highest level since 2016. This means it’s a good time to buy real estate. In the past, these were great moments for making money in real estate.
- More People Are Renting Many people are choosing to rent instead of buying homes. There is a shortage of affordable housing around the world, which makes renting more popular. This could make the housing market a great investment in 2025.
- Retail Market Is Strong The retail market is doing better because there aren’t too many new stores being built, and the winners and losers have already been decided. Retail has even been the top-performing real estate sector recently, making it a good place to invest.
- Growth in the Industrial Sector Even though things are slowing down in the industrial sector, it still looks like a good investment. With supply and demand starting to balance out, we expect rent prices to rise again in 2025.
- Opportunities in Office Real Estate There are some problems in the office market, but they’ve created new opportunities for investors. As old loans expire, there may be chances to invest in office spaces at a good price.
- Niche Sectors Are Growing Areas like student housing, self-storage, and data centers are doing well because they have unique demands. These niche markets can offer special investment opportunities in 2025.
What Are the Risks?
Even though we’re optimistic, there are still some risks. Interest rates are still high, and it may take time for them to come down completely.
Also, political issues like wars or changes in government policies could affect the economy.
However, we believe the real estate market will recover in 2025, especially in private markets.
Looking Ahead
2025 may be the year when things start to turn around for commercial real estate.
With the right strategy and an eye on the trends, investors could find exciting opportunities as the market begins to recover.
Keep an eye on these key sectors and be ready to jump in!
(Note: This is for informational purposes only and should not be considered investment advice.)