Real estate deal value rose 10 percent in 2025, reaching $842 billion, though overall transaction count remained flat, according to New McKinsey research. This growth is being driven by larger, more concentrated bets rather than broad-based activity, which signals a structural shift in how capital is flowing into the sector.
New McKinsey research finds that real estate’s rebound is highly selective, and the era of easy gains from falling rates and rising valuations is likely over. Performance now hinges much more on asset selection, operational execution, and capital structure discipline, with several shifts shaping this new cycle:
Capital is concentrating: Larger deals are driving volume as investors focus on fewer, higher-conviction opportunities.
Specialty sectors are surging: Data center deal volume surged 37 percent, making the sector one of the fastest-growing segments globally, with demand increasingly shiftin
