- North America: U.S. pending home sales rebounded 4.0% in August and new home sales jumped 20.5% reuters.com reuters.com. 30-year mortgage rates dipped to about 6.3%, near an 11‑month low foxbusiness.com reuters.com, boosting buyer confidence (Freddie Mac’s Sam Khater notes buyers have more leverage with these “lower rates” foxbusiness.com). Canada’s market is slowing amid higher borrowing costs, though no new moves on record.
- Europe: UK house prices in September rose modestly (0.5% MoM, 2.2% YoY) reuters.com as job growth and strong earnings keep demand steady, but surveyors warn of weak sentiment (RICS’s August house price balance was –19%) and higher rates. In Germany Q2 home prices were +3.2% (YoY) reuters.com yet still ~9% below 2022 peaks, as “stagnation” grips offices/retail and bankruptcies (private sector insolvencies +33% YoY) rise reuters.com. Overall, analysts say European markets are “freezing up” under high rates reuters.com.
- Asia-Pacific: China’s housing slump deepened in August – new home prices fell 0.3% MoM and –2.5% YoY reuters.com, while property investment plunged about 12.9% YTD reuters.com. Analysts expect authorities to ease purchase restrictions and credit (Shanghai/Shenzhen recently cut curbs) reuters.com, but forecasts see stabilization only by H2 2026 reuters.com. In Hong Kong, property values have dropped ~30% since 2021, stressing banks (non-performing CRE loans up to 6.7%) reuters.com. By contrast, Australia saw home prices jump 0.8% in September (fastest pace in a year) on recent rate cuts and tight listings reuters.com, and Singapore reported record high-end public housing sales (415 flats ≥S$1M in Q2) reuters.com. Singapore’s REIT market is bustling: Centurion Accommodation REIT raised S$771M in late-September and debuted +11% reuters.com, signaling renewed investor appetite. New Zealand reversed its foreign-buyer ban for “golden visa” investors (≥NZ$5M homes), aiming to attract capital reuters.com reuters.com.
- Middle East & Africa: Saudi Arabia is rolling out sweeping real estate reforms. A new law (effective Jan 2026) will let foreigners buy property in designated zones arabianbusiness.com thenationalnews.com – a “transformational” shift according to analysts (part of Vision2030’s plan to add 2.5 million new homes by 2030) arabianbusiness.com thenationalnews.com. In fact, Saudi’s Expo Real pavilion in early October will showcase “billions of dollars” of projects and debut areas where non-Saudis can own assets arabianbusiness.com arabianbusiness.com. The UAE also sees strong activity: Abu Dhabi H1 transaction values hit AED 5.86 billion (up year-over-year) uaenews247.com, and developers launched new luxury projects (Nakheel’s Bay Villas contract, ANAX’s ELLE Residences). Africa’s investment scene is heating up too: Lango Real Estate (Pan-Africa office/retail owner) is targeting a London IPO by mid-2025 reuters.com. South Africa, meanwhile, advanced its controversial land expropriation law (permitting rare seizures without compensation) reuters.com, sparking debate but also signaling regulatory risk for that market.
- PropTech & Capital Flows: Tech and capital deals are moving fast. In Singapore, after a series of incentives (tax rebates, dual-listing schemes), IPO activity is surging – US firm AvePoint dual-listed Sept 19, and more REITs (UI Boustead, Foundation Healthcare) are queued reuters.com. In Latin America, Brazilian AI proptech Lastro closed a $15 million Series A on Oct 2 to scale its “Lais” WhatsApp-based brokerage platform ffnews.com. These trends underscore growing investor interest in property tech and alternative equity plays. Investors in Asia-Pacific saw nearly $1.5 billion raised via IPOs in Singapore this year reuters.com, and Singapore now leads the region for IPO proceeds. In debt markets, Reed Smith forecasts some cooling: rising yields are expected to pressure high-leverage commercial property (JLL strategist Thomas Mundy warns rates uncertainty “creates an uncertain environment” reuters.com).
North America
U.S. Home Sales & Rates: New data show a clear rebound in U.S. housing activity. Pending home sales (contracts signed) rose 4.0% in August reuters.com, and Census-reported new single-family home sales surged 20.5% (to a 800,000 annualized rate) reuters.com – the highest since early 2022. Economists cautioned that August’s new-sales jump was unusually large and may partly reverse, but noted that it reflected lower mortgage rates and tight supply. By late September, the average 30-year fixed mortgage rate was ~6.3%, down from mid-2024 highs reuters.com. Freddie Mac Chief Economist Sam Khater says these 11‑month low rates have given buyers more confidence and “leverage” foxbusiness.com. MBA and other surveys showed mortgage applications rising as rates eased.
Commercial and Investment: Major US REITs and funds have continued fundraising. FCP® Capital (an affiliate of Mack-Cali) announced a $250 million mortgage loan on 2,000 multifamily units across 16 states in early Oct reuters.com, reflecting continued capital flow into apartments. PR News releases highlight large transactions: for example, FCP acquired a 560-unit Las Vegas complex on Oct 1 prnewswire.com, and Greenwood Star added two Atlanta-area apartment communities on Sep 30 prnewswire.com. On Wall Street, the Federal Reserve is widely expected to hold rates steady in its next meeting, with markets pricing in possible cuts by year-end. Ongoing federal conservatorship of Fannie Mae/Freddie Mac remains a political topic, with some policymakers pushing for IPOs (the Trump administration had signaled such plans earlier in 2025 reuters.com).
Canada: The Bank of Canada has held its policy rate at 2.50% since mid-2025. Housing starts and price growth have been trending down under higher mortgage costs. Analysts expect modest easing next year if inflation continues to fall. Toronto and Vancouver markets show ongoing inventory gluts. No major new federal housing policies were announced, but some provinces (e.g. Ontario) continue zoning reforms to boost supply.
Europe
UK: Nationwide Building Society reported that its house price index rose 0.5% in September, surprising forecasts of only 0.2% reuters.com. Prices are now 2.2% above last year’s level. Nationwide’s chief economist Robert Gardner attributed this resilience to very low unemployment and solid wage growth, and suggested borrowing costs may moderate further reuters.com. However, RICS sentiment surveys tell a mixed story: in August 2025 the net balance of estate agents reporting rising prices was –19 (net falls) reuters.com, indicating many expect further softness. Transaction volumes remain low, as would-be buyers cite high mortgage rates and economic uncertainty. The Bank of England has signaled a possible rate cut by year-end if inflation eases.
Eurozone/Germany: Housing markets across Europe remain sluggish. In Germany, home prices (all dwelling types) rose a moderate 3.2% year-on-year in Q2 reuters.com, partially driven by strong demand for newly built apartments (which were +7.0% YoY) reuters.com. Yet total prices are still about 9% below their 2022 peak, as the ECB’s tightening (to 4.5% deposit rate) cools demand. Analysts note a bifurcation: German residential is relatively stable, but offices and retail are under serious stress. One researcher said the CRE sector is “not Lehman-style”, but behaving in “fits and starts” – with rising insolvencies (+33% YoY through Aug) and refinancing risks for many developers reuters.com. Other European countries show similar caution: Ireland saw a moderation in house price growth as mortgage rules tightened, and parts of Scandinavia see early signs of stress. A Reuters analysis warned that euro-zone housing may “freeze up” under prolonged high rates reuters.com. Overall, investment flows into EU property have slowed, though some value investors are picking up distressed assets.
Regulatory and Policy: Across Europe, governments are grappling with affordability. In England, Chancellor Jeremy Hunt is set to unveil a budget in late October; rumored measures include tax reliefs for buyers or landlords. The EU’s Fit for 55 and upcoming taxonomy rules are pushing green retrofits in buildings. One big theme is energy efficiency: some Italian regions introduced new subsidies for heat-pump installations in homes starting Oct 2025. City councils from Paris to Vienna continue to restrict short-term rentals (Airbnb) to protect housing supply.
Asia-Pacific
China: The prolonged real estate downturn deepened in August. New home prices fell 0.3% month-on-month (extending July’s decline) and –2.5% year-on-year reuters.com. Used-home prices also dropped across all city tiers. Aggregate property investment fell 12.9% in Jan–Aug (vs. –8.2% a year prior) reuters.com, and floor space sold was down 4.7%. These trends reflect weak demand, high inventory and tight financing. Premier Li Qiang has repeatedly urged stimulus to stabilize the sector reuters.com reuters.com. Recent measures include lowering down payments and scrapping certain buying restrictions in key cities (Shanghai, Shenzhen) reuters.com. An analyst at Centaline Research said the market likely faces “significant adjustment pressure in the near term” and anticipates more easing on home-purchase curbs or interest rates reuters.com. In fact, many forecasters now delay any full housing rebound until mid‑2026 or later reuters.com. Meanwhile Chinese developers remain under stress: Country Garden won support from key creditors in August for its $14.1 b restructuring reuters.com, but liquidity is tight and some firms face liquidation petitions (e.g. a January 2026 court hearing for Country Garden).
Hong Kong: Property values have plunged ~30% since 2021, triggering strain in banks’ real estate portfolios. Hong Kong Monetary Authority (HKMA) data show non-performing loans for wholesale & retail trade and for corporates—including real estate—rising sharply. HSBC has warned vacancies are at record highs (office vacany ~18.9%) reuters.com. Breakingviews columnists note that HK regulators have stepped in with higher capital requirements, LTV cuts and stress tests to stabilize banks. HKMA Deputy Chief Executives have emphasized banking resilience: Hong Kong’s banks hold Capital Adequacy ratios over 24% and they are monitoring HKRE downturn but see the system as sound.
Asia – Others: In Japan, residential real estate remains stable; Tokyo housing prices are growing gradually with domestic demand. The Bank of Japan has signalled careful step-by-step tightening – Governor Ueda noted global uncertainty as a factor. In Australia, data from CoreLogic/Cotality showed home prices up 0.8% in September reuters.com, the strongest monthly rise since Oct 2024. Brisbane and Perth led gains, while Sydney/Melbourne also rose. Australia’s RBA has held at 3.60% (down from 4.35% a year ago) reuters.com, and a new 5%-down deposit scheme for first home buyers just launched is expected to further fuel demand. Vacancy rates have hit record lows (currently ~1.4%), so rents are rising (0.5% in Sept) reuters.com.
In Southeast Asia, Singapore’s market remains firm. Government data: public housing resale prices are up ~9.6% for 2024, with transactions +8% reuters.com. A record 415 HDB flats sold at S$1M+ in Q2 2025 reuters.com as wealthy locals keep buying high-end flats. Private home prices (URA index) were +1.2% in Q3 vs +1.0% in Q2 ura.gov.sg. To support capital markets, Singapore gave a 20% listing tax rebate early 2025 – this helped spur IPOs. Indeed, October saw new listings including first-time hotel stock UI Boustead (REIT) and upcoming Foundation Healthcare IPO. In India, residential prices are forecast to rise ~6–7% in 2025 after surging the past decade – a Reuters poll (Dec 2024) saw continued strength due to robust demand from affluent buyers. However, higher RBI rates (5.5% repo) and recent government bond yields have started to slow some city markets.
Middle East & Africa
Saudi Arabia: The kingdom’s housing and real estate sector is undergoing a “transformational” change. In late 2025 authorities formalized a Law on Real Estate Ownership by Non-Saudis (effective Jan 2026), allowing foreigners to buy residential, commercial, industrial and agricultural property in designated areas arabianbusiness.com thenationalnews.com. Analysts say this will encourage long-term expats and foreign investors, boosting demand and development. Deputy ministers emphasize that restrictions have been lifted, opening up “numerous opportunities” arabianbusiness.com thenationalnews.com. The change comes amid Vision2030 megaprojects: the kingdom plans 2.5 million new homes and billions in tourism/hospitality/infrastructure. Invest Saudi will unveil new projects (worth “billions of dollars”) at Expo Real Munich (Oct 6-8) arabianbusiness.com arabianbusiness.com. Rising events demand (Riyadh Expo 2030, FIFA 2034) is cited as fueling the real estate boom. Local bankers and developers expect a surge of foreign capital into cities like Riyadh and Jeddah once ownership rights expand. The Tadawul (stock exchange) reacted positively: in late Sept, news of easing foreign ownership limits spurred a 5% rally in Saudi shares (largest in 5 years) reuters.com.
UAE and Levant: Abu Dhabi’s property market reports strong H1 2025, with AED 5.86 billion in transactions uaenews247.com (luxury and residential both lively). Dubai continues to grow upscale supply: Nakheel awarded a $46M contract Oct 1 to build Bay Villas on Palm Jumeirah (150 mansions) cbnme.com, and on Sep 30 ANAX launched ELLE Residences (fashion-branded apartments). The Emaar Group and others are also opening foreign offices (e.g. Istanbul, Seoul) to attract investors. In Israel, large-scale mixed-use projects in Tel Aviv and Jerusalem are advancing, partly funded by foreign REITs. However, regional conflict (Hamas war) is keeping many global investors cautious; experts note tourism-related assets have held up better.
Africa: South Africa’s government passed a new land expropriation law (Sep 2025) that allows confiscation of land (rarely without compensation) to redress century-old imbalances reuters.com. This has reignited debate on property rights – critics (and even U.S. officials) warn it could deter investment, while supporters say it’s needed to bridge a “stark divide” reuters.com reuters.com. In financing markets, South Africa’s central bank (SARB) has kept rates at 8.25% as inflation eased; mortgage rates are high relative to incomes, and housing demand is weak. Meanwhile, African real estate capital markets are budding: Lango Real Estate, a pan-African office/retail owner, announced plans for a London IPO by Q2 2025 reuters.com, indicating growing international interest in African property.
Latin America saw less headline news but important trends: Brazil’s housing sector is strained under ultra-high rates (Selic 14.75%). Inflation briefly returned to positive in Sept, driven by housing costs (+3.3% in mid-September CPI) reuters.com as electricity prices spiked. Brazil’s central bank governor Galipolo told bankers in June that the traditional model (funding mortgages from savings deposits) is failing, and a “bridge” to new financing sources is being designed reuters.com. In Mexico, new housing credit programs were launched, but mortgage rates (~12%) remain a barrier. Many Latin central banks are near or past peak rates, suggesting more easing by late 2025, which could revive demand in 2026.
PropTech, REITs & Capital Markets
The global proptech sector continues attracting investment. In Brazil, Lastro – an AI-powered real estate chatbot platform – raised $15 million in a Series A round led by Prosus Ventures ffnews.com. Its AI agent “Lais” uses WhatsApp to automate 24/7 lead management, having already helped 1,000 brokerages ffnews.com. In the U.S., digital real estate lenders like Baselane secured $34M for AI banking tools for landlords (Sept 2025). Robotics-based construction startups (offsite manufacturing) and ESG-focused data providers also scored funding rounds.
On the public markets, real estate IPO and REIT activity is picking up in Asia. Singapore saw its second-largest listing of 2025 on Sept 25: Centurion Accommodation REIT raised S$771.1M (US$598.8M) and its units jumped 11.4% on debut reuters.com. Deloitte called the listing a sign that REIT IPOs have “returned to the market” reuters.com. Singapore now leads Southeast Asia’s IPO tally (S$1.46B YTD) reuters.com, helped by SGX measures (e.g. listing tax rebates introduced Feb 2025). NTT Data Center REIT’s S$773M IPO in July was the year’s largest. Meanwhile, U.S. real estate investment trusts (REITs) have been slower: office REITs are under pressure, retail REITs flat. A handful of new REIT IPOs launched in Q3 2025, mostly focusing on data centers, industrial parks and specialized assets. Global private equity real estate funds (e.g. Blackstone, Brookfield) reported steady fundraising, with targeting $30–40B per year (about the same as 2024), though deployment is cautious.
Expert Commentary & Outlook
Analysts and executives emphasize that interest rates are the key driver. JLL’s capital markets head Thomas Mundy warns: “The single most important thing is interest rates – but not just interest rates: what is equally important is the predictability of rates.” Uncertainty around central bank policy is keeping many buyers on the sidelines reuters.com. In the US, Freddie Mac’s Sam Khater noted that despite the recent uptick, mortgage rates “remain below their 52‑week average,” which has helped keep the housing market “buoyant” foxbusiness.com. Nationwide’s Robert Gardner also commented that UK market fundamentals (wages, jobs, equity buffers) are healthy, suggesting only a gradual normalization as BoE eventually cuts reuters.com.
For forecasts, most institutions see a modest rebound potential in 2026 once policy rates fall. For example, a Reuters poll of Chinese economists sees housing market stability not before late 2026 reuters.com. In the US, economists expect the Fed to cut rates by at least 50 bps by mid-2026, which should improve affordability and spur some buying, but also note that home-price-to-income ratios are near record highs in many markets. The IMF and major banks caution that commercial real estate (especially office) will weigh on bank balance sheets into 2026, potentially prolonging a credit crunch in CRE.
Overall, October 2025’s real estate news paints a mixed picture: regions like the U.S., Australia and Singapore are seeing surprisingly strong demand as rates ease, while China and parts of Europe/Asia remain sluggish with policymakers scrambling to support prices. The Middle East is aggressively opening up and building, and proptech is drawing fresh capital worldwide. The consensus outlook is one of cautious optimism: with central banks likely to start cutting in Q4, markets may stabilize, but full recovery in many areas is not expected until 2026.
Sources: Cited reporting from Reuters and other industry publications on dates Oct 2–3, 2025 reuters.com reuters.com arabianbusiness.com reuters.com, as well as expert commentary from economists and executives foxbusiness.com reuters.com. All data are from publicly released surveys, central bank and government data, and credible real estate news outlets.
