Saturday, 15 March 2025
In 2024, global real estate investment experienced a notable resurgence, reversing a two-year downward trend. Investment volumes increased by 14% year-over-year, totaling approximately US$703 billion.
This growth was particularly evident in the fourth quarter, where investment activity surged by 37% compared to the same period in the previous year. The Americas led this upward trajectory with a 45% year-over-year increase in Q4, culminating in an annual total of US$372 billion, marking a 10% rise from 2023. The Europe, Middle East, and Africa (EMEA) region also demonstrated robust performance, with full-year volumes reaching US$199 billion, a 17% increase, and a remarkable 40% surge in Q4 alone. The Asia Pacific region followed suit, recording a 10% uptick in Q4, bringing its annual total to US$131 billion, up 23% year-over-year.
Several factors contributed to this positive momentum. Central banks initiated rate cuts in 2024, enhancing financing conditions and bolstering investor confidence. This monetary easing, coupled with diminished inflation risks, is anticipated to continue through 2025 and into 2026, further supporting investment activities.
Despite these gains, the market faced challenges. Global cross-regional capital flows among North America, Europe, and Asia-Pacific totaled US$26.7 billion in the first half of 2024, representing a 10% decline year-over-year.  Additionally, private real estate fundraising experienced a slowdown, with approximately US$98 billion raised in 2024, a significant decrease from recent levels.
Looking ahead, the global real estate market is poised for a gradual recovery in 2025. The improved financing environment, combined with sustained investor interest, is expected to drive continued growth in investment volumes across regions. However, market participants remain vigilant, monitoring economic indicators and geopolitical developments that could influence investment decisions.
