As we move into 2025, the real asset market is demonstrating real resilience and adaptability. It is entering a phase of renewed growth and innovation, driven by several emerging trends and evolving investment strategies. From the resurgence of M&A activity to advancements in sustainability and technology, these developments are paving the way for a dynamic and resilient future in real estate.

Key trends shaping the real asset market

Insights from PwC, EY and Deloitte provide a comprehensive outlook on this dynamic sector. In this article, Elizabeth Fitzgibbons, Centralis Group Chief Commercial Officer, takes a deeper look at the emerging trends and strategies for 2025.

1. Recovery in M&A and capital investments: Mergers and acquisitions in the real estate sector are poised for growth. EY projects a 10% increase in overall deal activity for 2025, bolstered by a robust economic environment and easing monetary policy. The private equity segment alone is expected to see a 16% rise in deal volumes as firms capitalise on softening interest rates and strategic realignment.
2. Focus on commercial real estate: Deloitte highlights a transformative phase in commercial real estate, emphasising opportunities in office space, industrial properties and mixed-use developments. As hybrid work models stabilise, developers are repurposing office assets to meet changing tenant demands while prioritising sustainability and technology integration.
3. Sustainability and ESG integration: Across all real asset classes, environmental, social and governance (ESG) considerations remain a pivotal focus. Investors are increasingly prioritising energy efficiency, carbon-neutral construction and climate-resilient assets to align with regulatory changes and public expectations. There is growing interest in assets that contribute to both financial and societal returns.
4. Technological innovation: Real estate firms are accelerating the adoption of digital solutions such as building information modelling (BIM), property management platforms and data analytics to enhance efficiency and scalability. Automation is also becoming critical in streamlining operations and meeting investor reporting demands.
5. Supply-driven rental rebound: A lack of good-quality supply should support rental growth prospects, while inflation should support real cashflows in indexed assets. According to MSCI, European all property rents increased by 4.4% over the year to June 2024.

Customisation of operational models

While real estate managers have traditionally managed all back-office operations in-house, the increasing complexity of the asset class and the challenges facing the broader industry have led more managers to explore outsourcing, co-sourcing and lift-out solutions for their back-office needs. CFOs are looking towards tailored real estate services, regardless of the operating model that works best for them.

Outsourcing with Centralis

By choosing an outsourcing arrangement with Centralis, you gain access to our expert teams who will manage all facets of your administration, including advanced technology and data infrastructure. Our solutions provide seamless delivery of information through Yardi, ensuring efficiency and transparency.

Look ahead to 2025

The real asset market in 2025 is marked by strategic innovation and resilience. With a focus on sustainability, sector-specific growth in areas like life sciences, and a favourable economic outlook, investors are well-positioned to capitalise on emerging opportunities. However, careful navigation of macroeconomic uncertainties and ESG compliance will be critical in shaping long-term success.

Get in touch to find out how we can support your business.

For reference, insights from MSCI, PwC, EY, and Deloitte.