Signs are emerging that preconditions for a recovery in real estate are in play, according to research by Savills that found $380B was invested in global real estate during the first half of 2025.
It found sentiment and a willingness to transact was present among both buyers and sellers, alongside a greater acceptance of price and the continued strength of many occupational markets. Performance varied, reflecting differing fundamentals across commercial offices, living, and industrial/logistics markets.
In Q2 alone, commercial real estate saw US$193B in transaction volumes, albeit a 5% decline from Q2 2024. Completed commercial office transactions reached US$45B globally, marking a 12% year-over-year increase. The U.S. led the growth with a 50% jump, though from a relatively low base. The report noted reservations around office investment are starting to ease amid limited supply and low development levels — particularly in the US, Europe, the Middle East, and Asia — that is fueling growth in the rental market.
By contrast, transactions in the living sector totaled US$58B in Q2, down 9% from the same period last year. However, a strong start to 2025 lifted the sector nearly 8% by the mid-year mark; the senior living sub-sector rose more than 80% year-to-date to US$15B in transactions.
Global investment in the industrial and logistics sector totaled US$42B in Q2 2025, reflecting a 10% year-over-year decline. That said, the sector saw three consecutive quarters of growth, resulting in a fairly stable transaction volume of US$86B, on par H1 2024’s US$87B.
