2025

Latin America’s real estate market is forecast to double in value by 2033, supported by accelerating urbanization and ambitious affordable housing programs. Brazil’s government delivered 180,000 new affordable units in 2023, making São Paulo and Rio de Janeiro top destinations for development and investment. Cities like Bogotá and Santiago are experiencing a surge in villa and suburban housing, driven by urban professionals seeking more space. Investment is also flowing into mixed-use and smart city projects, reflecting demand for sustainable, amenity-rich environments across the region.

Investment in European commercial real estate is expected to reach €214 billion in 2025, led by strong interest in logistics, mixed-use, and green-certified projects. Sustained demand from institutional investors reflects the appeal of stable, inflation-resistant assets. Growth sectors include last-mile logistics, student housing, and high-tech office spaces. Market sentiment, however, remains pragmatic, with 2026 projections indicating lower growth and heightened attention to asset selection amid economic uncertainty.

Rising prices and supply shortfalls across major European cities are fueling calls for comprehensive policy reform and deeper private-public cooperation. New partnerships between governments and developers aim to unlock land, streamline approvals, and accelerate affordable housing construction. The focus is on balancing sustainability goals with the need for faster delivery, as shortages are particularly acute in technology and business hubs like London, Berlin, and Amsterdam. Industry leaders see logistics, data centers, and infrastructure as prime areas for profitable investment as the region contends with structural shifts in work and living patterns.

France has emerged as Europe’s housing market leader in 2025, posting a 10.4% increase in home sales, driven by robust demand in urban and coastal areas. The surge is attributed to government-backed lending programs and greater foreign investment, particularly in Paris and popular Mediterranean locations. Spain also recorded a 2.5% rise, signaling renewed confidence in vacation and second-home markets. By contrast, Poland’s market contracted nearly 18%, reflecting the impact of higher interest rates and slowing wage growth. Analysts warn that while some countries rebound, affordability concerns and limited supply could temper gains across the region in 2026.