Global Real Estate Outlook: Signals, Shifts, and Strategies

Affordability Squeeze and Build-to-Rent Momentum

As mortgage costs outpace wages, many markets see renters-by-necessity rising. Build-to-rent communities gain traction with professional management and predictable amenities, offering institutional-grade income streams. Track permitting pipelines and operating expense trends to calibrate sustainable rent growth assumptions.

Urban, Suburban, and the Rise of Second Cities

Hybrid work encourages migration toward smaller, lifestyle-rich cities with lower costs. Yet core urban neighborhoods with vibrant services retain pull for young professionals. Watch transit investments, school quality, and small business vitality to anticipate neighborhood resilience and household stickiness.

Aging, Accessibility, and Mixed-Generational Housing

Rapidly aging populations in Europe and parts of Asia drive demand for accessible design and proximity to healthcare. Mixed-generational projects blend independent living with supportive services. Developers who integrate wellness, community spaces, and mobility tools see stronger occupancy and retention.

Offices: Flight to Quality and Purposeful Presence

Top-tier, amenity-rich, energy-efficient offices outperform as tenants trade up to support culture, collaboration, and talent retention. Commodity space struggles with rising capex and leasing friction. Underwrite net effective rents with realistic concessions, and budget heavily for repositioning or conversion.

Logistics, Nearshoring, and Supply Chain Reshaping

Inventory strategies shifted from just-in-time to just-in-case, but absorption normalizes as new supply delivers. Nearshoring and manufacturing revival support select nodes. Focus on infill, power capacity, and transportation access, and examine tenant covenants to avoid overpaying late-cycle premiums.

Hospitality, Retail, and Experience-Centric Recovery

Leisure-led travel and experiential retail continue to rebound, while business travel is more selective. Mixed-use formats that blend food, culture, and flexible events generate dwell time and spend. Analyze seasonality, staffing resilience, and local brand partnerships to stabilize cash flows.

Climate Risk, Insurance, and Resilient Value

Floods, heat, wildfire, and storms are altering insurability and operating costs. Map parcel-level hazard data against insurance trends and retrofit costs. Proactive adaptation—elevations, fire-resistant materials, and passive cooling—can lower premiums and preserve lender confidence when markets tighten.

Climate Risk, Insurance, and Resilient Value

High-performing buildings increasingly command rental and liquidity advantages, while inefficient stock faces valuation drag. Model energy savings, incentives, and carbon pricing to justify deep retrofits. Engage tenants early to align fit-out strategies with building systems and measurable sustainability targets.

PropTech, Data, and the Edge of Decision-Making

Machine learning accelerates comp selection, lease abstraction, and demand forecasting. Pair algorithms with human judgment, especially around outliers and regulatory shifts. Establish model governance, back-test assumptions, and maintain clear audit trails to build trust with investment committees.

PropTech, Data, and the Edge of Decision-Making

IoT sensors and building analytics reduce energy use, predict maintenance, and improve comfort. Start with metering, anomaly alerts, and clear KPIs. Tenant transparency dashboards can boost satisfaction and renewals, turning operational excellence into durable income and valuation upside.