Global real estate investment activity in H1 2025 was broadly in line with the same period last year, according to Savills’ latest ‘Takes Stock’ Global Capital Markets report. In H1 2025, $380bn was invested in global real estate compared with $376bn in H1 2024.
In Q2 2025, $193bn of commercial real estate transacted, which was down 5% on Q2 2024. In the second quarter, office transactions globally totalled $45bn, up nearly 12% year-on-year, with the US seeing a 50% increase, albeit from a low base.
Living sector investment activity in Q2 reached $58bn, a 9% fall compared with Q2 2024, however, Savills said a strong start to 2025 has left the sector up nearly 8% at the half year point with investment in the senior living sub-sector up by more than 80% in the year-to-date.
Across the industrial and logistics sector, Q2 investment of $42bn represented a 10% decline year-on-year, which Savills said was largely due to uncertainty surrounding the impact of US import tariffs.
Oliver Salmon, director – global capital markets, Savills World Research, said: “The global economic narrative remains heavily influenced by the actions of the current US administration, fuelling geopolitical volatility and uncertainty around growth prospects and tempering real estate transactions around the world. Nonetheless, in H1 we have seen pockets of growth and outperformance in certain geographies and sectors, most notably in offices where consistent income growth, high occupier demand, and low supply have down much to change the narrative about the long-term future of the office.”
Rasheed Hassan, head of global cross border investment at Savills, added: “While institutional investors are slowly coming back to the market, they are being very specific in asset selection. This has allowed typically cash-rich private investors to continue to take a larger share of global real estate markets in 2025.
“Overall, the current environment favours a more discerning investor – with a clear understanding of supply-demand dynamics and comfortable with an underlying balance of risk. Investors with strong market presence and sector-specific expertise are best positioned to navigate these early cycle dynamics.”
