The global real estate sector is showing strong signs of recovery in 2025, driven by rising urban housing demand, renewed infrastructure investments, and the stabilization of interest rates.
Real Estate Recovery Gains Momentum
After two years of stagnation, property markets in major economies are expanding again. According to IMF data, global real estate investment rose 6.2% in 2025, marking the first significant rebound since the pandemic. Cities in Asia and the Middle East are leading this recovery with record housing projects.
Infrastructure Spending Boosts Construction
Massive infrastructure programs — including transport networks, green energy projects, and smart city developments — are fueling the construction sector. Governments are using real estate and public works spending as tools to stimulate growth and job creation.
Shifts in Urban Living and Design
Developers are focusing on mixed-use spaces that combine residential, commercial, and recreational areas. Smart buildings, eco-certified materials, and energy-efficient designs are becoming standard, reflecting the global push toward sustainable urbanization.
Investors Return to Property Markets
With inflation easing and mortgage rates stabilizing, institutional and individual investors are reentering the market. Real estate investment trusts (REITs) are seeing strong inflows, particularly in logistics and residential segments.
