In the annual "Review of Global Capital Markets" report, the international real estate advisor highlights that the recovery extends beyond any single market or region and is not concentrated in just one sector. The residential, industrial, logistics, and hotel sectors (referred to as "beds and sheds") experienced an uptick in transaction volumes in 2024. Notably, the stabilization and growth in office investment volumes position the sector as a key investment story of the past year, particularly in light of the negative perceptions it has faced in recent years.
The fourth quarter of 2024 saw a more than 25% increase in transaction volumes across all sectors, rising from $203 billion in Q4 2023 to $258 billion, providing strong momentum for 2025, according to Savills’ research. The average size of transactions grew by 10% globally in 2024, with large institutional investors returning to the market. Portfolio deals and mergers and acquisitions surged by nearly 50% in Q4 2024. Geographically, most major global markets returned to growth last year, with Australia standing out. Additionally, South Korea saw significant growth supported by a number of key office transactions.
Oliver Salmon, Director of Global Capital Markets at Savills World Research, comments: “After two challenging years, the cyclical factors that have impacted property values and investment activity are beginning to ease. The recovery in real estate capital markets is expected to continue gaining strength. While the environment for raising real estate capital remains challenging, liquidity will be bolstered by an increase in sellers and capital recycling. As a result, we anticipate global investments will rise by 20% annually in the coming years, as liquidity returns to the markets.”
Source: Savills
