What role do institutional investors play in the real estate market recovery?

Institutional investors are increasing their allocations to private real estate, signaling confidence in the sector's recovery. According to Nuveen's 2025 EQuilibrium survey, almost 40% of global institutional investors plan to increase their investments in private real estate over the next two years.

Which real estate sectors are attracting the most investment?

Data centers, industrial properties, and residential buildings are currently the top sectors attracting investment. Self-storage assets are also gaining notable interest, with a notable increase in investor allocation plans from 16% in 2024 to 29% in 2025.

what factors are contributing to the stabilization of the real estate market?

The stabilization of the real estate market is attributed to three key factors: value stabilization, improving total returns, and a sharp decline in new construction. These indicators suggest that the market has found it's floor and is poised for renewed growth.

How have global real estate capital flows changed recently?

Total global real estate capital flows to North America, Europe, and asia-Pacific in H2 2024 rose 31% year-over-year to $37 billion. This increase indicates growing investor confidence and a rebound in market activity, despite geopolitical and economic uncertainties.

What is the role of defensive property types in the current market?

Defensive property types, such as medical outpatient buildings, grocery-anchored retail, middle-market residential, and light industrial, are considered more resilient in the face of economic uncertainty. Investors are increasingly focusing on these sectors to mitigate risk and ensure stable returns.

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Global Real Estate: Recovery, Trends & Investment Opportunities

Q: What role does Western Europe play in the global real estate recovery?

Western Europe is gaining traction among investors due to its strong fundamentals, lower interest rates, and the potential for near-term rate cuts. Increased regional cooperation may also serve as a catalyst for further growth in the real estate sector.

by Priya Shah – Business Editor June 24, 2025

written by Priya Shah – Business Editor June 24, 2025

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Real Estate‘s role in Global Recovery: Institutional Investors Return in 2025

Global real estate markets are showing signs of a strong rebound in 2025, driven by renewed confidence from institutional investors. After a period of contraction between Q3 2022 and Q3 2024, the sector is experiencing value stabilization, improved returns, and a significant drop in new construction, paving the way for sustainable recovery.

Institutional Investment Trends in Real Estate

Institutional investors are playing a crucial role in the resurgence of the real estate market. According to Nuveen’s 2025 EQuilibrium survey, nearly 40% of global institutional investors plan to increase their allocations to private real estate over the next two years, a ample increase from approximately 25% the previous year.

Did You Know? In H2 2024, global real estate capital flows to North America, Europe, and Asia-Pacific surged 31% year-over-year, reaching $37 billion

Priya Shah – Business Editor

Priya Shah – Business Editor Priya Shah is a financial journalist and Business Editor at World Today News. She specializes in global markets, innovation, and economic trends, making complex business stories accessible to all readers. Priya’s reporting background spans top financial publications and startup hubs worldwide.

Global Real Estate: Recovery, Trends & Investment Opportunities

Real Estate‘s role in Global Recovery: Institutional Investors Return in 2025

Institutional Investment Trends in Real Estate

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