Current trends and forecasts of the global real estate market in early 2025
The beginning of 2025 was marked by the active development of the real estate market around the world. Despite some economic turbulence, this sector continues to attract the attention of investors, buyers and developers. In this article we will look at the key trends observed in the global real estate market, analyze regional peculiarities and try to make forecasts for the near future.
British real estate market: slowing growth, but remaining attractive
The UK has traditionally been considered one of the most stable and attractive real estate markets for investors from around the world. However, there is a slight slowdown in house price growth in early 2025. According to the Office for National Statistics, UK property prices rose by just 3% in January 2025 compared to the same period in 2024, the lowest rate of growth since July last year.
Nevertheless, regional differences in the British housing market remain very significant. The highest rate of price growth is demonstrated by Northern Ireland, where this indicator amounted to 5.9%. London, which retains the status of the most expensive real estate market in the country, showed price growth at the level of 2.8%. Despite the slowdown in growth, experts still consider the British real estate market very attractive for investment. The stability of the economy, high demand for quality housing and the traditional reliability of the market remain the key factors attracting both local and foreign investors.
Global trends: a period of stagnation and a new round of growth
Looking at the global real estate market as a whole, analysts predict a period of relative stagnation in 2025, followed by a new round of price growth. This trend is due to several factors, including rising costs of construction materials and labor, as well as higher mortgage interest rates.
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Impact of rising interest rates
One of the key factors affecting the global real estate market in early 2025 is rising interest rates in most countries around the world. Central banks have had to resort to tightening monetary policy to combat rising inflation. The increase in mortgage and other lending rates has increased the cost of financing real estate projects. Developers have had to rethink their financing models, which has affected the pace of new housing and commercial real estate construction.
In some countries, this situation has already raised concerns about a possible shortage of supply in the real estate market in the coming years. Governments and regulators are considering additional anti-crisis measures to support the construction sector and ensure housing affordability.
Changing investment trends
Another important trend in the global real estate market in 2025 is the change in investment trends. Against the backdrop of economic instability and rising inflation in the US and the UK, investors have begun to shift their focus to more stable regions and asset classes. In particular, there is an increased interest in real estate in emerging economies such as South-East Asia, as well as in Switzerland and the Middle East. These regions attract foreign investors with their relative stability and favorable investment climate.
In addition, real estate investments are becoming increasingly popular as a way to preserve capital. Many investors consider investments in residential and commercial real estate as an alternative to traditional financial instruments such as stocks and bonds. In addition to real estate, there is an increased demand for “protective assets” such as gold, as well as investments in promising industries related to artificial intelligence and other advanced technologies.
Situation on the Russian real estate market
The Russian real estate market also shows interesting trends in early 2025. Experts predict a decrease in prices for apartments in old panel houses and objects under construction. At the same time, the cost of almost completed and secondary real estate objects is expected to increase. These trends are related to the general economic situation in the country and the influence of various factors, including preferential mortgage programs, which led to overheating of the market. Some analysts do not rule out the possibility of a 20-30% correction of real estate prices in Russia in case of further deterioration of economic conditions.
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In 2024, the global real estate market showed significant price growth, especially in Turkey, Poland and Bulgaria. The main factors are inflation, increased availability of mortgage lending and active investments. Seoul and Tokyo stand out in the premium segment. In 2025, further moderate price growth is expected, although the dynamics will be uneven across different regions.
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