According to Savills' latest Takes Stock Global Capital Markets Report, global real estate transaction volume amounted to $380 billion in the first half of 2025. This is broadly in line with the level of the first half of 2024 ($376 billion).
The international real estate consultant notes that while global markets are treading water in some respects, there are several prerequisites for a recovery in investment activity. Both buyers and sellers are showing improved sentiment and willingness to transact, and acceptance of current price levels is also increasing. At the same time, the still strong occupier and rental markets are strengthening confidence in the investment market.
Looking ahead to the second quarter of 2025, Savills reports a transaction volume of $193 billion in the commercial real estate sector – a decrease of 5% compared to Q2 2024. However, the development varied depending on the sector.
In the office segment , completed transactions totaled $45 billion globally in the second quarter of 2025, up nearly 12% year-over-year. In the USA, growth was as high as 50% – albeit from a low starting level. According to Savills, reservations about office investments are decreasing. The low supply and weak construction activity – especially in the USA, Europe and the Middle East – promote the willingness to invest and strengthen confidence in further rising rents. In Germany, there has so far been a greater restraint in the investment market in the office segment: the transaction volume in the first half of 2025 was around a third below the previous year's figure. Against the backdrop of the existing sales backlog, however, Savills is also registering a growing number of sales processes in this country, which are expected to gradually lead to more deals.
Residential real estate transactions totaled $58 billion in the second quarter, down 9% from the second quarter of 2024. However, the strong start to the year meant that the half-year result was 8% higher than in the previous year. The senior living sub-segment developed particularly dynamically, with USD 15 billion invested so far this year – an increase of more than 80%. According to Savills, global investor demand in the residential real estate sector remains stable; however, in some markets, a lack of available investment opportunities is holding back activity.
In the industrial and logistics real estate market, investments in the second quarter of 2025 fell by 10% year-on-year to USD 42 billion. However, this followed three quarters of positive growth, so global volume remained broadly stable in the first half of the year at $86 billion (2024: $87 billion). According to Savills, uncertainties about the extent and impact of US import tariffs weighed on investor expectations – most noticeably in the Asia-Pacific region. However, with the latest trade agreements, more clarity is emerging. Supportive supply factors from the owner's and investor's point of view suggest that pent-up demand in both user and capital markets could be unloaded in the further course of the year.
Oliver Salmon, Director – Global Capital Markets, Savills World Research, said: "The global economy continues to be heavily influenced by the policies of the current US administration. This leads to geopolitical fluctuations and uncertainties about future growth, thereby slowing down real estate markets worldwide. Nevertheless, we saw growth and outperformance niches in selected regions and sectors in the first half of the year. Office properties in particular stand out: steady rental growth, high demand from users and limited supply have contributed a lot to reshaping the perception of the long-term prospects of this segment."
Rasheed Hassan, Head of Global Cross Border Investment at Savills, adds: "Institutional investors are gradually returning, but are very selective in their property selection. This has enabled private, well-capitalised investors to continue to capture a larger share of the global real estate market in 2025. Overall, the current environment favors more sophisticated investors – with a clear understanding of supply and demand dynamics and an informed assessment of the risk balance. Market participants with a strong market presence and sectoral expertise are currently best positioned to successfully capitalize on this early-stage dynamic."
