Real estate investments in 2025 are promising due to market rebound and favorable macroeconomics

From Investing.com: 2024-12-01 16:01:01

Real estate markets are rebounding due to favorable macroeconomic conditions, with analysts highlighting compelling opportunities for investors. U.S. Treasury yields fell this week, signaling investor confidence in potential interest rate cuts by the Federal Reserve. Pending home sales rose for the third consecutive month in October, increasing 2% from the previous month and 6.6% year-over-year.

The U.S. housing market’s steady recovery may signal a global real estate investment revival, driven by declining capital costs and increased availability of debt. Supply shortages in both commercial and residential construction, combined with strong demand, are expected to lower vacancy rates and boost rental growth, potentially leading to significant capital appreciation.

Logistics properties, data centers, and telecommunication towers are standout segments within commercial real estate, driven by e-commerce and artificial intelligence trends. Multi-family housing, senior living, and student housing are identified as promising growth areas in residential real estate. Core and core-plus real estate managers are well-positioned in private markets to generate income through opportunistic acquisitions.

Despite positive trends, caution is advised in the UK residential market due to affordability challenges, while mainland China remains risky despite stimulus measures. UBS forecasts a broader real estate recovery in 2025, emphasizing the importance of evaluating sector fundamentals and regional dynamics to effectively navigate opportunities. For investors prepared to manage risks, the current environment presents a promising entry point into the recovering real estate market.



Read more at Investing.com: Why you should consider real estate investments in 2025 By Investing.com