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2025 Global Investment Outlook

Property investors can look forward to better times ahead, as cyclical headwinds subside. The Savills global research network anticipates a recovery in real estate capital markets, with investment activity and capital values expected to improve in 2025.

Global real estate investment: 2025 and beyond

After a sharp downturn in real estate capital markets, sentiment is starting to turn. But how quickly will recovery follow? We project global real estate investment will rise by 7% to US$747 billion in 2024, with further growth to US$952 billion forecast for 2025.

Adjusting to a new world order

The Covid-19 pandemic kickstarted a new era of higher interest rates and increased macroeconomic volatility. How have real estate investors responded to this inflection point? And what comes next?

Offices in equilibrium: Spotlight on Paris

In the fifth of our Offices in Equilibrium Q&A series, Cyril Robert, Head of Research at Savills in Paris, explores the reasons behind the city’s reduced demand for office space – and it isn’t all down to the aftershocks of hybrid working

Offices in equilibrium: Spotlight on Sydney

In the third of our Offices in Equilibrium Q&A series, Australia’s Chris Naughtin, National Director of Capital Markets Research, explain how prime office space in central business districts is essential for talent retention

Offices in equilibrium: Spotlight on Singapore

In the fourth of our Offices in Equilibrium Q&A series, Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, explains the impact of hybrid working on an office-centric culture and why ESG concerns from overseas tenants will drive the repurposing of sub-prime properties

Offices in equilibrium: Spotlight on New York City

In the second of our Offices in Equilibrium Q&A series, Marisha Clinton, Vice President, Research East at Savills in New York City, explains that while utilisation rates haven’t hit pre-pandemic levels, deep-pocketed tenants are trying to secure prime office space

Offices in equilibrium: Spotlight on London

In the first of our Offices in Equilibrium Q&A series, Mat Oakley, Head of Savills UK and European Commercial Property Research, explains that while average take-up is down 10-15% in London, many companies are looking to upsize

High rate environment continues to stifle investment activity

Global real estate capital markets remain forlorn, with risk-averse sentiment hitting all sectors and all geographies. But with interest rates now peaking, the first pre-condition for stability has been met. More certainty around interest rates and borrowing costs should help to facilitate a floor in pricing, and eventually, a recovery in investment activity.

Offices in equilibrium: what needs to happen?

The real estate industry needs to adopt a proactive approach to ensure balance between supply and demand in an ever-evolving office market. Central to this is the provision of top-tier offices and the strategic repurposing of lower-quality assets.

Out of office: adapting to new ways of working

Covid-19 changed office-based working almost overnight. But the rise of new work patterns isn’t the only factor determining future demand. How are different work cultures and changing needs shaping office availability around the world?

Global warehousing costs

Warehousing rents have risen sharply, but in an inflationary environment other input costs have risen even faster. Where does that leave rental affordability, and which markets still offer value?