European real estate leaders have taken some solace from a more benign interest rate environment compared to previous years, however, fragile economic growth and growing geopolitical uncertainty continue to weigh on market sentiment.
Geopolitics has featured prominently in recent editions of "Emerging Trends in European Real Estate," but this year it looms particularly large as the industry considers the potential impact of domestic and foreign elections, as well as conflicts in Ukraine and the Middle East. Consequently, the sentiment among the 1,214 real estate professionals surveyed is cautiously optimistic. While the survey suggests improved business confidence and profits for 2025 compared to a year ago, interviews offer a more nuanced view of the market, with caveats woven throughout.
Overall Global Real Estate Market Size and Regional Distribution
- Overall Global Real Estate Market Size
According to the 2025 Global Real Estate Market Report released by Cognitive Market Research, global real estate market revenue is projected to reach $384.62 billion in 2025. The global size reflects the total revenue generated globally from all types of real estate transactions, leasing, and related services, including residential, commercial, and industrial properties. According to OSI Asia-Pacific Data and Global Growth Insights, the global real estate market value was US$1,134.233 billion in 2024 and is projected to reach US$1,196.843 billion in 2025. This discrepancy stems primarily from different definitions of real estate market size, with some organizations counting only transaction revenue, while others include a broader range of real estate-related services.
From an asset value perspective, the total global real estate market value far exceeds annual revenue. According to UN-Habitat, the global real estate market has exceeded US$100 trillion, encompassing the total value of all types of real estate assets, including residential, commercial, and industrial. This figure highlights the importance of real estate as the world's largest asset class.
- Regional Market Distribution and Share
The global real estate market exhibits significant regional imbalances:
- Asia-Pacific: Accounting for the largest share of the global real estate market, accounting for 53.15%, with revenue reaching US$2,044.26 billion in 2025. This region's dominance is primarily driven by the vast markets of populous countries such as China, Japan, and India.
- North America: Ranked second, with a market share of 19.15% and revenue of US$736.547 billion. As the world's largest economy, the US real estate market dominates North America.
- Europe: Accounting for 11.90%, with revenue of US$457.698 billion. Western European countries such as Germany, the UK, and France constitute the majority of the European real estate market.
- Latin America, the Middle East, and Africa: Comprising Latin America, the Middle East, and Africa, it accounts for approximately 15.8% of the total market.
According to JLL data, global direct real estate transaction activity reached US$185 billion in the first quarter of 2025, a year-on-year increase of 34%. This indicates that despite global economic uncertainty, real estate market activity remains robust.
Size and Characteristics of Real Estate Markets in Major Countries Around the World
US Real Estate Market: Large and Steady Growth
As the world's largest single real estate market, the US dominates the global market in terms of size and dynamism.
- Total Market Size: The US real estate market has a total market capitalization of approximately US$55 trillion, making it the world's largest real estate market. In just five years, the value of the US real estate market increased by $20 trillion, demonstrating strong growth momentum.
- Annual Revenue: According to Statista, the US commercial real estate market is projected to reach $25.8 trillion in 2025. Mordor Intelligence, on the other hand, projects the market to reach $1.70 trillion in 2025, a discrepancy that reflects the impact of different statistical calibers.
US Market Segment Performance:
- Residential Market: US residential sales increased by 12% in 2025, demonstrating strong demand.
- US Commercial Real Estate: Commercial real estate grew by 9% in 2025, with office, retail, and industrial properties performing particularly well.
- US Market Drivers: Low inventory levels, a strong job market, and increased demand from millennials are the primary factors driving US real estate market growth. However, high interest rates and housing affordability challenges are also putting some pressure on the market.
- US debt pressure: JLL predicts that by the end of 2025, a large amount of debt on US real estate assets will mature, which may have an impact on market liquidity and transaction activity.