Next year has the potential to be a “pivotal turning point” for global real estate markets, according to a new report from Hines.
The firm’s A New Dawn: Seizing Real Estate’s Moment of Opportunity report outlines a positive outlook for 2025, with the living, retail and industrial sectors highlighted as key conviction themes for the real estate investment manager.
“As we enter 2025, we remain in the midst of a massive transition in the investment landscape,” said David Steinbach, Hines’ global chief investment officer. “The dynamics of the previous cycle – where unusually low interest rates propelled growth and easy leverage – have faded and are being replaced by a higher-for-longer interest rate environment where investors will need to focus on alpha generation.
He added: “We will likely look back on 2025 as a pivotal moment of recovery in many areas of the commercial real estate sector – now is the time for investors to put capital to work and reposition their portfolios.”
Hines said that the living sector offered “significant opportunities” particularly in BTR, while strong consumer sentiment was helping to underline its conviction in retail.
“As we close the door on 2024 and look ahead to 2025, our data finds that the global real estate market presents a promising, but complex, landscape,” said Joshua Scoville, head of global research at Hines. “It’s our conviction that the year ahead will bring stability, clarity, and potential opportunity for global real estate investors as the dust settles and the asset class turns a corner into recovery.”
Send feedback to Samantha McClary
Follow Estates Gazette
