Global Real Estate Markets Show Resilience, Investor Confidence Rebounds in Q3 2025

Record Low Construction Starts Intensify Prime Space Competition in US and Europe

In an intriguing development for global real estate, Q3 2025 marks a period of resilience and rebounding investor confidence. The market has shown notable robustness, driven by pent-up industrial demand and a vigorous expansion within the retail sector. According to J.P. Morgan Research, new construction starts in the U.S. and Europe have hit record lows, intensifying the competition for prime space. With industrial and retail sectors ramping up, the scarcity of new developments is pushing existing properties into a competitive spotlight. This scarcity underscores a broader trend where investors are now jostling for limited premium locations, keeping transactional markets highly competitive.

U.S. Housing Market Sees Modest Price Increase Amidst High Mortgage Rates

The U.S. housing market continues to navigate a landscape of high mortgage rates, which are expected to ease only slightly to 6.7% by the end of 2025. As per data from Redfin, U.S. home prices in October 2025 were up by 1.4% compared to the previous year, selling at a median price of $440,387. Additionally, the report notes that 24.9% of homes sold above list price, indicating a robust demand despite financial constraints. The slightly improving mortgage rates combined with a 6.7% year-over-year increase in homes for saleref="/for-sale/morocco/sale">sale, now totaling over 2 million, are providing buyers with more options, although affordability concerns linger.

Global Real Estate Market to Reach USD 15 Trillion by 2032

The global real estate market is set for impressive growth, projected to reach approximately USD 15 trillion by 2032. According to Dataintelo, this growth is driven by increasing urbanization and a rising demand for residential and commercial spaces. The Asia Pacific region is a significant contributor, experiencing rapid expansion due to its burgeoning population and urban development. Meanwhile, North America and Europe benefit from economic stability and substantial investments in technology and sustainability, ensuring steady growth in their real estate sectors.

Living Sector Investment in the U.S. Nears Pre-Covid Volumes

The living sector, particularly in the U.S., is poised to reach pre-Covid investment levels. This resurgence is largely supported by strong demand for multifamily and student accommodation in both Europe and the Asia Pacific, as noted by RealEstateAbroad.com analysis. As the U.S. housing sector continues its gradual recovery, the living segment sees a renewed interest with investors capitalizing on the stable returns offered by multifamily units. This trend is complemented by a similar pattern in the Asia Pacific, where student accommodation is witnessing heightened demand.

Asia Pacific Leads Global Real Estate Growth

Asia Pacific is at the forefront of global real estate market growth, fueled by urbanization and population expansion. According to Dataintelo, the region's real estate market is rapidly expanding, a trend expected to continue well into the next decade. This growth is bolstered by an increasing demand for both residential and commercial real estate, as cities across the region experience heightened urban development and infrastructural advancements.

Future Implications for Global Real Estate Investors

As we look to the future, the current trends in global real estate markets suggest several implications for investors. The competitive nature of transactional markets, coupled with a decreasing vacancy rate, presents unique opportunities for those looking to invest in prime spaces. With a forecasted growth rate reaching USD 15 trillion by 2032, as per Dataintelo, investors are urged to consider the Asia Pacific for its dynamic growth potential. Furthermore, the living sector's resurgence, particularly in student accommodations, offers diverse investment avenues. Investors are advised to stay informed about regional differences and evolving market dynamics to effectively leverage opportunities in this rebounding market.