News / Insights

The report *Emerging Trends in Real Estate Global Outlook*—produced by the Urban Land Institute and PwC—examines how key economic and political factors are reshaping the global real estate market, with direct impacts on asset classes, investment strategies, and regional dynamics.

The real estate sector operates in an environment characterized by persistent inflation, still-high interest rates, and geopolitical uncertainties. International tensions—from the conflict in Ukraine to the crisis in the Middle East—are influencing investor expectations, with consequent impacts on capital allocation decisions.

The debate on sustainability remains open: while in some parts of the world the ESG transition is being questioned due to costs and its impact on returns, in other markets energy efficiency and compliance with sustainable criteria remain key drivers of value, especially for assets seeking to maintain high marketability over the long term.

On the investment front, the commercial real estate market is showing signs of recovery, with a gradual increase in transactions. Interest is growing in properties with higher appreciation potential, such as retail and value-add offices, and in segments with a strong operational component, such as logistics, data centers, and renewable energy. Digitalization, artificial intelligence, and energy security represent key competencies for investors.

In Europe, the outlook remains positive, although elements of uncertainty persist. The recovery in transactions in 2024 (+11.2% compared to the previous year) was driven by the United Kingdom and Southern Europe, while Germany and France are experiencing a slowdown. The realignment of supply and demand and the expected adjustment of interest rates are encouraging investors to return, with opportunities emerging in specific market segments.

The residential sector remains among the most dynamic, thanks to demand outpacing supply. Interest in “beds and sheds” assets is consolidating: European logistics maintains solid prospects thanks to low vacancy rates and sustained demand, while the hospitality sector continues the growth it began in the post-pandemic period. Looking ahead to 2025, London remains the most attractive city for real estate investment, followed by Madrid, Paris, Berlin, and Munich. Madrid moves up to second place, while Warsaw ranks twelfth, confirming interest in cities with expanding economies and solid markets.

Download the report here