Investment: Europe, Asia and the UK attract capital

After a two-year period marked by macroeconomic uncertainty, rate hikes and geopolitical volatility, the global real estate market is entering a new, more stable and potentially investment-friendly phase. These are the findings of the Global Real Estate Outlook Mid-Year 2025 published by M&G Real Estate, according to which the current conjuncture represents a 'window of cyclical opportunity', with Europe, the UK and Asia emerging as strategic hubs for capital reallocation.

Driving this shift are several converging factors: on the one hand, the context of falling interest rates, a more restrained development pipeline and the consequent recalibration of valuations; on the other, a new investment geography dictated also by political and fiscal uncertainty in the United States, which is prompting investors to look more strongly at more cohesive and predictable markets.

"We are facing a structural transformation in global real estate investment," explains Martin Towns, Global Head of M&G Real Estate. "The market, while still selective, offers opportunities for those with a long-term view. Current conditions allow access to quality assets at values close to the cycle lows. A rare situation, which opens up margins for value-add strategies and sustainable returns over time'.

M&G's analysis confirms the centrality of logistics and living, but also underlines the resurgence of interest in office and retail spaces - provided they are prime, ESG-compliant and offer a high user experience. In parallel, the race for data centres, an asset class increasingly central to the digital transition and the growth of artificial intelligence, is strengthening.

In residential housing, in particular, there is a renewed commitment of investors to diversified formulas: student housing, affordable housing, urban build-to-rent. The approach, notes M&G, is increasingly consumer-oriented: 'Occupants are willing to pay a premium for services, comfort and quality, especially in the prime and super prime segments.