Savills: Unveiling the 2025 Global Property Insights & Forecasts

By Jose E. McKenna

I’m Jose E. McKenna, and I’ve spent years studying real estate markets around the world. I know how property trends change with money, technology, and global events. Savills, a big name in real estate, just shared their 2025 global property insights and forecasts. These reports tell us what’s coming for buying, selling, and investing in properties like homes and offices. They’re full of useful information. In this article, I’ll explain everything in very simple English to help you understand and make smart choices about property.

Why Savills’ 2025 Forecasts Matter

Savills is a trusted company that looks at property markets everywhere. Their 2025 forecasts show the world of real estate is getting better after some tough years. In 2023, global property investments dropped to $699 billion, the lowest since 2012. The start of 2024 was slow too. But things are changing now. Banks are lowering interest rates, which makes borrowing money easier. People are less worried about a big economic crash. Also, more people are renting spaces and using properties, which is a good sign.

Savills says most of their experts—about three out of four—think 2025 will bring more buying and selling of properties. They also expect property prices to go up. As someone who’s followed these markets for a long time, I can tell you this is exciting. When people want to rent or use spaces, investors get interested, and the market grows.

Big Growth in Global Property Investment

Savills predicts a big jump in property investments for 2025. They expect the total to hit $952 billion, which is 27% more than in 2024, when it was $747 billion. By 2026, it could even reach over $1 trillion, something we haven’t seen since 2022. These numbers come from trusted sources like MSCI RCA and Oxford Economics and cover most of the world’s property market.

Lower interest rates are helping this growth. In 2024, big banks started cutting rates, so borrowing money costs less. This makes properties more appealing to buy. Big investors, like companies and funds, are jumping back in and buying more properties. From my experience, when these big players return, it makes everyone feel more confident about the market.

But not every place is the same. North America, especially the US, will see the biggest growth, with $575 billion in investments, up 38%. The US lowered interest rates to 5%, and the economy is expected to grow by 1.9%. In Europe, prices dropped fast, which helps buyers and sellers agree on deals. But some places, like Hong Kong and mainland China, have too many properties and slower growth, which makes things harder.

What’s Happening in Different Regions

Savills shares details about different parts of the world. Let’s look at some key areas.

Europe

In 2024, Europe saw €174 billion in property investments, up 17% from the year before. In 2025, they expect 23% more, reaching €214 billion. Countries like Ireland, Spain, and the Nordic countries (like Sweden and Norway) are doing great. Germany and France have some challenges with factories and industries changing. People from other countries buying properties and wanting steady income are helping Europe grow.

United States

The US is feeling hopeful but careful. In top cities like Miami, home prices might go up by 2.5%, but other places may stay the same. The average price growth across the US is 0.7%. Lower home loan rates and not enough houses for sale are making people feel good about buying.

Asia

Asia has different stories. Dubai is a star, with home prices growing 8–9.9% because of new buildings. Sydney in Australia is doing well because there aren’t enough homes. But tech cities like Shenzhen in China and San Francisco in the US might see small price drops.

United Kingdom

In the UK, Savills is more positive than before. They think house prices will go up 4% in 2025 and 23.4% over the next five years. UK properties are expected to give a 7.4% return, better than the 6.8% they predicted before. Areas like the North West are great for renting out homes.

Best Sectors to Invest in for 2025

Savills points out the best types of properties to invest in. Here’s what they say.

Top Offices

High-quality offices are a favorite. Most experts think rents for these offices will go up, and more businesses will rent them. After the pandemic, companies want nice, modern offices. There aren’t enough of these in big cities, so rents are strong. Older offices might be good for investors who want to fix them up and sell them later. I’ve seen that offices with eco-friendly features, like energy-saving designs, are the most popular because only 22% of offices in big cities have green certifications.

Industrial and Logistics

Warehouses and delivery centers are growing fast. Online shopping and global trade need these spaces. This makes them a safe and popular choice for investors in many countries.

Living Sectors

Homes and apartment buildings are doing well, especially in developed countries. More people moving to cities means more demand for housing. In Europe, 19% of all property investments in 2024 went to homes and apartments.

Retail and Hotels

Shops and stores might get better as people feel more confident about spending money. Hotels also did well in 2024, especially in Europe, where they grew alongside warehouses and shops.

Luxury Homes in 2025

For fancy homes, prices around the world are expected to grow by 1.6% in 2025, a bit less than the 2.2% in 2024. This covers 30 major cities. Things like taxes and political changes might slow growth, but some places are doing great.

Dubai is the leader, with 8–9.9% price growth because of new homes being built. Cities like Madrid and Barcelona in Spain are also growing, with many American buyers interested. Lisbon in Portugal is popular for people moving there.

In the US, Miami is the top city with 2.5% growth. Places like London, Miami, and Hangzhou in China might bounce back after a slow 2024. The best homes are safe places to put money and live in.

Rents for luxury homes grew 1.9% in 2024. Lower interest rates help, but elections in some countries create uncertainty.

What’s Driving the Market and What’s Holding It Back

The economy is the biggest worry, but other things matter too. More people moving to cities means we need more homes. Older populations create a need for senior housing. Climate change is pushing for eco-friendly buildings.

Technology, like artificial intelligence, is changing how offices and warehouses work. World events, like trade changes, affect where properties are built. In Europe, the economy is expected to grow by 1.2%.

Some challenges include too many properties in certain places and new government rules. But good things, like low unemployment, help people keep renting and using spaces.

Simple Tips for Investors and Buyers

With Savills’ insights and my years of expertise, here are easy tips for you:

• Look for top-quality properties in growing areas like offices and warehouses.
• Pay attention to North America and Southern Europe for good deals.
• Think about fixing up older offices or homes to make money.
• Keep an eye on interest rates and the economy—they drive the market.
• Choose eco-friendly properties for better value over time.

Final Thoughts

Savills’ 2025 forecasts show a promising year for property markets. Investments will grow, prices may go up, and top offices are a great choice. As an expert, I suggest focusing on strong markets while watching out for risks. Talk to local experts for advice that fits your needs. The property world is moving forward, so now’s the time to plan wisely.

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Disclaimer:
This content is created for informational and marketing purposes only and is not officially affiliated with, endorsed by, or sponsored by Savills. For accurate details, property listings, and official information, please visit the official Savills website or contact their authorized representatives directly.