Emphasis on sustainability, technological innovation, and strategic investments are expected to be the key drivers shaping the success of companies in the commercial real estate sector in the coming years. These factors will enable businesses to differentiate themselves from the competition and foster further growth.
The main findings of Deloitte's 2025 Commercial Real Estate Outlook are summarized as follows:
Revenue Growth: Nearly 90% of respondents anticipate growth in their company's revenue in 2025, with 60% projecting annual growth of more than 5%. This indicates a restoration of confidence in the industry at the revenue level.
Increased Budgets and Investments in Technology: 81% of executives plan to increase their company's budget, with a particular focus on investments in technology and data. The integration of artificial intelligence and other innovative technologies is seen as essential for enhancing competitiveness.
Macroeconomic Challenges: The primary concerns of executives include increased interest rate risks, cyber risks, changes in tax policies, and rising capital costs. These factors are expected to significantly impact companies' financial performance over the next 12 to 18 months.
Investment Opportunities: Industrial units, residential complexes, hotel properties, and accommodations are expected to offer the most promising growth opportunities, driven by rising demand in these sectors.
Sustainability and Upgrades: 76% of respondents are planning major energy efficiency upgrades to their properties within the next 12 to 18 months. These initiatives are seen as critical for reducing carbon footprints and achieving sustainability targets.
Interest Rates and Market Outlook: While high interest rates will continue to pose challenges, commercial real estate companies are optimistic about improvements in financial conditions in 2025, anticipating lower interest rates and market recovery.
Mergers and Acquisitions: 68% of respondents intend to increase their mergers and acquisitions (M&A) activities over the next 12 to 18 months, focusing on enhancing technological infrastructure and bolstering competitiveness.
Emerging Technologies: Artificial intelligence continues to make significant strides, with 76% of companies in the early stages of adoption or pilot projects. Businesses that have invested in AI and are advancing its implementation expect to improve decision-making processes and increase operational efficiency.
On the occasion of the report's publication, Mr. Christos Kosmas, Partner, Real Estate Advisory and Corporate Finance Leader, and Real Estate Sector Leader at Deloitte Greece, stated: "2025 is shaping up to be a year of pivotal importance for the commercial real estate sector. Organizations now have a unique opportunity to adapt their strategies and recover dynamically by investing in technological innovations such as artificial intelligence and embracing sustainable practices. Sustainability and energy efficiency are no longer merely options but are now strategic imperatives that will drive success. Companies that quickly adapt to these emerging trends will be well-positioned to overcome future challenges and emerge as industry leaders."
