News / From the associates

2025 is shaping up to be a pivotal year for the commercial real estate sector, marked by the consolidation of the market’s recovery and the emergence of new opportunities, but also by persistent uncertainties in the macroeconomic and geopolitical landscape.
Lower interest rates will help stabilize debt costs, thereby encouraging increased investment in commercial real estate. Sectors such as residential and logistics will take center stage, with global investments estimated at over $1.4 trillion over the next five years, concentrated in both established markets like the United Kingdom, Germany, and Japan, as well as emerging markets.

Demand for high-quality assets will continue to grow amid a contraction in the supply of new space. In Europe, new office construction will decline by 30%, leading to particularly intense competition for prime space in cities like London, Madrid, and Warsaw, where the availability of quality product is already extremely limited, especially in central areas most sought after by tenants. This competition will drive an increase in the redevelopment of existing buildings, particularly in key sectors such as data centers, logistics, and offices. Data centers, in particular, will see an increase in supply in cities such as Milan and Madrid, but demand will continue to far exceed available capacity, partly due to the needs associated with artificial intelligence. At the same time, growing pressure on energy costs and sustainability requirements will accelerate green retrofitting projects.

In summary, flexibility and the ability to understand local dynamics will be essential to capitalize on opportunities and mitigate risks. Improving credit market conditions and growing demand for quality space will offer significant opportunities for investors and developers, but will require careful planning and proactive approaches from all stakeholders.