Global markets are waking up to a new reality as the first half of 2025 is punctuated by tariff shocks, inflation persistence, rising yields on longer-term bonds, and growth downgrades, according to Hines.
The latest iteration of the Mid-Year Outlook uses the firm’s 40 years of historic data to draw comparisons with the 1970s, where U.S. inflation rose to its first peak during the first 26 months of each cycle, easing over the following 26 months, and then rose again during the following 40 months.
David Steinbach, CIO at Hines, believes today’s market conditions represent a similarly generational moment for capital deployment in real estate:
“Through the ’70s and into the early ’80s, real estate performance accelerated due to income growth driven by scarcity, discipline, and rising replacement costs. Today, global construction has fallen off compared to historic averages, yet demand has remained. That supply and demand mismatch is not hypothe
