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CRE transaction volume expected to increase in 2025
Real Estate - NOVEMBER 22, 2024

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CRE transaction volume expected to increase in 2025

by Elise Mackanych

After several years of decade lows for global commercial real estate transaction volume, 2025 may bring higher transaction volumes, according to a report by Oxford Economics. With a reversal of the denominator effect and selling pressure on private closed-end funds, transaction volumes are expected to exhibit a robust and sustained growth.

Amid interest rate hikes by central banks in 2022, wide bid-ask spreads appeared, and buyers and sellers began questioning the future trajectory of real estate values. Markets remain cautious, despite an easing of interest rates. However, Oxford Economics believes there are positive trends signifying improved investment activity for the coming years. The CRE repricing cycle is nearing its maturity phase, with other structural forces supporting increasing growth moving forward.

Globally, transaction volumes are still 60 percent below the peak levels of 2021 and 40 percent below pre-pandemic volumes. However, factors such as a reversed

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