Falling mortgage rates enhance luxury real estate in the U.S., while offices linger in a post-pandemic limbo - Global perspectives on American property market trends
In the dynamic world of real estate, various regions are experiencing a mix of growth and challenges. Here's a snapshot of the current state of the global real estate market.
Lagos, Nigeria, continues to witness a massive demand for real estate, despite high-interest rates. The average price for a mid-range property is projected to reach ₦50 million (around $65,000) by 2025. Elsewhere in Africa, urbanization and investment are driving growth, positioning the continent's stock market for expansion in 2025.
Meanwhile, Africa's neighbour, the Persian Gulf, is thriving. Capital inflows are strong in Abu Dhabi and Dubai, making the region's real estate market a beacon of prosperity. In Abu Dhabi alone, the volume of real estate transactions reached AED 25.3 billion ($6.9 billion) in Q1 2025, marking a 34.5% year-on-year increase.
Across the Atlantic, Latin America is attracting wealthy buyers, both local and foreign. Real estate, a safe investment and status symbol, is seeing a surge in interest, indicating confidence in the long-term value of luxury real estate in the region.
Brazil, however, is at a turning point. With the central bank starting to lower interest rates, there's cautious optimism that 2026 could bring a broad revival in real estate deals.
In contrast, housing prices in Israel have stabilized due to rising interest rates, but a severe shortage of new housing keeps prices high.
The European Union is addressing its housing shortage by constructing nearly one million housing units using innovative, faster, and cheaper construction methods. The first European plan for affordable housing, announced by Ursula von der Leyen, aims to make housing more accessible and affordable by 2050.
Moving to the heart of the continent, Nairobi, Kenya, is a hub for real estate investment. The city's growing tech sector and demand for modern offices and quality housing are driving investment. Housing prices in some suburbs of Nairobi have increased by 20% annually, partly due to new infrastructure and affordable housing projects attracting middle-class buyers.
The Kenyan government and banks are actively supporting the housing sector, allocating funds to expand access to affordable housing mortgages and financing new developments.
In the Middle East, Saudi Arabia could become the 'new UAE' in terms of attracting global capital. The opening of the Saudi Arabian real estate market is happening alongside megaprojects like NEOM (a $500 billion futuristic city) and construction booms in Riyadh and Jeddah. Foreign investors are taking notice, with an increasing number of Africa-focused real estate investment funds.
Saudi Arabia has adopted a landmark policy change, allowing foreign citizens to own property in designated zones from 2026. Developers in Abu Dhabi are reporting that luxury projects along the waterfront and new villas are selling out, often to foreign buyers obtaining 'golden visas'.
Turkey remains a unique case, with foreign buyers supporting the Istanbul real estate market despite the lira's collapse. Mexico, after a boom during the pandemic, has seen real estate price growth slow in 2025 due to inflation and increased credit rates.
Finally, in the commercial sector, industrial real estate is thriving in Mexico, and retail real estate is recovering as consumer spending increases. The global real estate market is experiencing a rollercoaster ride of cyclical changes and structural shifts. Each sector and region must be considered on its own fundamental terms due to the localized and segmented nature of the real estate market.
Cityscape Global, one of the world's largest real estate conferences, will take place in Riyadh in November, ready to present opportunities to a global audience of investors and developers. The conference serves as a testament to the optimism and potential in the global real estate market.
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