Although ready to commence a new real estate cycle, real estate leaders globally are braced for another challenging year of uncertainty, with lingering inflation — largely driven by factors including geopolitical instability — and persistently higher interest rates in some regions potentially delaying a hoped-for recovery in capital markets and occupancy metrics. This is according to the Emerging Trends in Real Estate Global Outlook 2025 from PwC and the Urban Land Institute (ULI).

Political risk is an overarching industry concern, particularly in relation to how policy and legislative decisions will influence monetary policy, the prospects for economic growth and the continuing impacts of global conflicts and disputes. Uncertainty, driven by factors such as the U.S. administration’s tariff policies and broader geopolitical shifts, is reshaping the global investment landscape. Financial markets and investment decisions are being influenced by growing challenges