The global real estate market is shifting, and new opportunities are emerging
The real estate landscape is poised for significant shifts in 2025, with certain regions emerging as prominent housing hotspots. Factors such as economic growth, demographic trends, and evolving buyer preferences are set to influence these developments.
United States: Southern and Midwestern Cities on the Rise
The National Association of REALTORS® (NAR) has identified several U.S. cities expected to lead the housing rebound in 2025. These include Charlotte, North Carolina; Knoxville, Tennessee; and Kansas City, Missouri. These markets are characterized by affordable housing, strong job growth, and an influx of new residents. For instance, Charlotte has experienced a 10% job growth over the past five years, with 43% of its properties categorized as starter homes priced below $324,000, making it particularly appealing to first-time home buyers and young families.
United Kingdom: Northern Ireland and Northwest England Leading Growth
In the UK, housing markets in Northern Ireland and northwest England are projected to experience faster growth compared to the southeast. This trend is attributed to stabilized mortgage rates and increased market activity. The average asking price in the UK has risen to £267,500, marking a 1.9% increase from the previous year. Zoopla predicts a 2.5% average rise in house prices for 2025, with northern markets expected to see faster growth.
Ireland: Western Counties Experiencing Significant Price Increases
In Ireland, western counties such as Clare, Donegal, and Galway have seen house prices rise by over €10,000 within three months, marking an annual increase of 16%. This surge is due to a housing supply crisis, leading to intense bidding wars with properties often selling for €50,000 over the asking price. Nationally, real estate agents forecast a 6% rise in house prices in 2025 due to continued limited supply and high demand.
Australia: Mid-Sized Cities Outperforming Major Metropolises
In Australia, mid-sized cities like Perth and Adelaide are expected to outperform major metropolises in terms of property price growth. Perth and Adelaide may see potential growth of 3-6%, while Sydney is expected to see modest growth of 1-4%, and Melbourne may experience a slight decline or modest growth of up to 2%. This trend is influenced by delays in interest rate cuts and the impact of the upcoming federal election.
China: Addressing the Property Glut
China is grappling with a massive property glut, which is undermining economic stimulus efforts. To address this, a proposed housing policy “bad bank” would purchase unsold homes from developers and turn them into affordable housing, thereby stabilizing the market. If successful, it could restore confidence and prevent a deeper housing slump.
Global Trends Influencing Housing Markets
Several global trends are expected to shape housing markets in 2025. These include the rise of model-apartment-as-showroom concepts, offering immersive and shoppable residential spaces, and the prominence of branded residences leveraging brand recognition to attract buyers in competitive markets like Miami and New York. Additionally, there is a growing demand for community-centric developments with amenities that encourage neighborly connections, and home adaptability with flexible and multifunctional spaces is gaining preference over large square footage.
The housing market in 2025 is set to be influenced by a combination of economic factors, demographic shifts, and evolving buyer preferences. Regions offering affordability, job growth, and quality of life are poised to become the new hotspots, attracting both investors and homebuyers seeking opportunities in a dynamic real estate landscape.
