News / From the associates

The latest report published by RICS on market sentiment for the second quarter of 2025 highlights an overall picture that remains uncertain, reflecting a fragile macroeconomic environment. Globally, the Composite Property Sentiment Index (CPSI)—calculated as the balance between those reporting an improvement and those reporting a deterioration in conditions—remained at –6. This is the same level as the previous quarter, but less negative than the figures recorded in recent years (–8, –7, and –11), indicating a gradual easing of pessimism.

In Europe, the index rose from –6 to –4, signaling a less pessimistic sentiment than the global average. Labor demand remained essentially stable (+1%), but with significant national variations: very positive in Spain (+54%), still weak in France and Belgium. On the investment front, the overall balance of demand stood at +7% (down slightly from +10% in the previous quarter), with positive results in three-quarters of European countries. Nearly half of European operators (49%) believe the market is in a recovery phase, up from 45% last quarter and 34% at the end of 2024.

At the sectoral level, the polarization between prime and secondary segments remains evident. For offices, growth expectations for capital values on prime assets have been revised upward, reaching the most positive levels in the last three years, while the outlook for secondary assets remains negative. Logistics remains the sector with the strongest expectations, with an overall net balance of +10% for occupier demand, an improvement from +6% in the previous quarter. For retail, however, the balance remains marginally negative (-1%). Optimism regarding alternative assets continues to strengthen, particularly for data centers and student housing, for which average increases in values and rents of around 3% are expected over the next twelve months.

In Italy, the market is characterized by high uncertainty, with investment transactions taking longer and reduced visibility on investors’ objectives, also influenced by difficulties in raising capital and the unstable geopolitical context. Despite this, prime properties, particularly in Milan, continue to see high levels of demand, in line with trends observed in other more resilient European markets such as Spain.

Finally, sustainability is becoming increasingly central: over 70% of lenders exclude assets that do not meet ESG requirements or lack a conversion plan. Fifty-seven percent offer better terms to those who meet environmental or social targets. Incentive mechanisms are prevalent, but penalties—where they exist—are more severe because they are tied to regular monitoring.

Download the report