The past two years have challenged the real estate asset class. Rising interest rates put upward pressure on capitalisation and discount rates, which in turn put downward pressure on values. Entering 2025, these headwinds have broadly abated, and the painful reset seems to be at an end.

This year should be a promising year for real estate investment. After falling 16.2 percent from the peak, global real estate values seem to have stabilised and total returns have ticked positive, driven by consistently positive and stable income returns coupled with modest valuation changes. The lack of new construction activity bodes well for medium-term fundamentals. While the new US presidential administration may create both tailwinds and headwinds for various sectors and geographies, the megatrends underpinning investments will unfold over decades.

For instance, regardless of political or economic conditions, the ageing global population will drive exponential demand for healthcar