Property prices around the European Union have resumed growth after a period of correction. According to Eurostat, house prices in the EU rose by 5.4% year-on-year in the second quarter of 2025, following modest gains in 2024 after two quarters of decline in 2023. This recovery has been supported by easing inflation and interest rate cuts by the European Central Bank and the Bank of England in mid-2024, which improved financing conditions for buyers and investors. Despite these positive signs, the market remains cautious due to lingering geopolitical risks and structural supply shortages in major cities.

London continues to rank among Europe’s top investment destinations, driven by regeneration projects and strong rental demand. Prime areas such as Battersea, King’s Cross, and Paddington are attracting global investors, with projected price growth of up to 13.9% over the next five years and rental yields averaging between 8.5% and 9.2% annually for buy-to-let properties. Germany remains Europe’s largest commercial real estate market, valued at nearly $2 trillion in 2024, despite price declines of 7.4% year-on-year in the second quarter of 2024 due to high financing costs and economic uncertainty. Analysts expect stabilization as interest rates fall and ESG-driven retrofits boost demand for sustainable assets.

The European commercial real estate market overall was estimated at $1.42 trillion in 2024, with projections to reach $2.42 trillion by 2032, driven by logistics, data centers, and green-certified properties. Residential markets face structural undersupply, particularly in urban hubs, which continues to support price resilience despite macroeconomic headwinds.

Asia-Pacific real estate markets present a mixed picture. India has emerged as a global growth leader, with its real estate sector valued at $482 billion in 2024 and projected to reach $1.18 trillion by 2033, growing at a compound annual growth rate of 10.5%. India’s rise is fueled by urbanization, infrastructure development, and strong demand for residential and commercial spaces. Institutional investments surged in 2025, supported by regulatory reforms and the country’s improved ranking in JLL’s Global Real Estate Transparency Index, moving to the “transparent” tier for the first time.

China, once the engine of global property growth, continues to grapple with a prolonged housing crisis. New home prices fell by 0.22% in May 2025, and real estate investment dropped 12% year-on-year, despite government stimulus measures including record-low down payment requirements and tax incentives. While policy support has stabilized sentiment, oversupply and weak demand remain structural challenges, with analysts warning that recovery will be slow and uneven.

Singapore has shown resilience, with private home prices rising 3.9% in 2024, supported by a strong fourth-quarter recovery and easing inflation. HDB resale prices climbed 9.6%, reflecting sustained demand for public housing amid affordability concerns in the private market. The Singapore real estate market is projected to grow from $53.6 billion in 2025 to $67.2 billion by 2030, at a 4.6% CAGR, driven by logistics, data centers, and luxury housing.

High inflation and supply chain disruptions have significantly impacted construction costs worldwide. In 2024, global construction costs rose by 5–7%, driven by surging material prices such as steel, cement, and lumber, labor shortages, and energy volatility. Cities like New York and Zurich remain the most expensive for construction, with costs exceeding $5,000 per square meter, while London re-entered the global top ten at $4,473 per square meter. Developers are increasingly adopting prefabrication, modular construction, and green building practices to mitigate cost pressures and meet sustainability targets.