Global Real Estate Investment Rebounds: US Leads $12 Trillion Capital Unlock

Global Real Estate Investment Reaches $380 Billion in H1 2025

In the first half of 2025, global real estate investments totaled $380 billion, marking a significant milestone in the recovery of the market. According to Markets Group, this resurgence is attributed to an increased willingness among buyers and sellers to transact, alongside a strong occupational market. The U.S. has been a leader in this revitalization, particularly in commercial office transactions, which soared by 50% from last year. This growth indicates a stabilization of values and a positive trend in market dynamics, showcasing the resilience of the real estate sector amid global economic challenges.

US Executive Order to Unlock $12 Trillion in Capital

An executive order expected to be enacted could unleash up to $12 trillion in investment capital by permitting Individual Retirement Accounts (IRAs) to invest in private markets. This legislative change aims to expand the investment scope of asset managers, thereby increasing liquidity in the global real estate market. As noted by CRE Daily, while $350 billion in dry powder is currently available, access remains uneven, necessitating enhanced workflows for sponsors to attract high-net-worth investors.

An executive order expected to be enacted could unleash up to $12 trillion in investment capital.

European and Asia-Pacific Investors Target India, Canada, and France

Investors from Europe and the Asia-Pacific region are setting their sights on real estate in India, Canada, and France. As per the JLL Global Real Estate Outlook 2025, supply shortages in these countries are prompting institutional investors to increase allocations, particularly in sectors experiencing heightened demand such as residential and industrial properties. This strategic shift is expected to bolster transaction volumes and drive robust leasing activities across key central business districts.

Private Credit Strategies Attract One-Third of New Capital

Private credit strategies have emerged as a key attraction for investors, drawing approximately a third of the new capital raised globally. According to InvestNext, firms with strong operational capabilities are more likely to secure funding, with these strategies offering appealing risk-adjusted returns. The trend towards specialization in sectors such as data centers is also gaining traction, reflecting investors' preferences for assets with stable income streams and growth potential.

US Real Estate Market Poised for 10% Growth

The U.S. commercial real estate market is projected to grow by 10% this year, according to the CBRE 2025 Midyear Review. Despite remaining 18% below pre-pandemic levels, this growth is indicative of a steady recovery. Office deliveries are anticipated to reach their lowest in 13 years, prompting a decrease in prime vacancy rates to an estimated 13.6% by year-end, with expectations to return to pre-pandemic levels by late 2027.

Institutional Investors Increase Real Estate Allocations

A growing number of institutional investors are planning to increase their allocations to private real estate, with nearly 40% indicating such intentions, up from 25% last year. The Institutional Investor highlights this trend as a response to stabilizing market values and positive returns. Investment flows to North America, Europe, and Asia-Pacific rose significantly, reflecting a 31% increase year-over-year in H2 2024, underscoring the global appetite for real estate investments.

Future Outlook: Sustained Recovery and Growth

Looking forward, the global real estate market is poised for sustained recovery and growth. The combination of strategic legislative changes, evolving investor preferences, and robust demand across regions like India, Canada, and France positions the sector for continued expansion. As asset managers leverage new capital sources and adapt to changing market conditions, the industry is set to capitalize on emerging opportunities. According to RealEstateAbroad.com analysis, stakeholders should remain vigilant to regulatory shifts and evolving market dynamics to optimize their investment strategies moving into 2026.