
JLL: Global Real Estate Sentiment Strongest Since Early 2022

(Image courtesy of JLL; Breakout image courtesy of Jan van der Wolf/pexels.com)
JLL, Chicago, released its outlook for 2025, making predictions about the year ahead for commercial real estate.
In general, JLL believes the real estate cycle has “turned a corner”–a sentiment backed up by the Global Real Estate Sentiment Survey conducted in November 2024, which saw the most optimistic result since February 2022. A majority of respondents think conditions will improve further over the next six months.
However, there will still be challenges in the real estate space, including those related to the economy, fiscal and trade policies, interest rates and geopolitical conflicts.
JLL anticipates supply shortages will worsen for in-demand assets across property types, and new building activity has generally slowed.
For investors, an early-mover advantage may peak in 2025. And, intensifying supply shortages as completions slow in the year will amplify competition for quality existing assets as some investors re-enter the market.
Portfolio expansion is back on the table, JLL said, noting that changing office attendance policies will continue to bring workers back in person. But, in the short term, the focus will be on portfolio rightsizing and transforming spaces into workplaces that fit needs.
Given the drop in office construction, competition for the best space will intensify.
Focus on the scale of potentially obsolete assets will continue, including significant amounts of existing office space that would need capital expenditure to remain viable. There will also be continued conversations about sustainability and conversion in many cities.
Finally, tackling cost pressures and energy security will push further decarbonization efforts.
Overall, JLL has pegged recovery, risk and resilience as key themes for 2025, with strengthening demand, more liquidity and more decisive corporate action all on the table.