Real Estate Trends for the Second Half of 2025

The real estate market in 2025 is navigating a shifting landscape shaped by global economic dynamics. Inflation, interest rates, and housing demand will all play a key role in shaping the property outlook for the remainder of the year. Here’s a breakdown of the main trends and how they may influence buying and selling decisions.

The Impact of Inflation and Interest Rates on Housing

Moderate but Persistent Inflation

While inflation has eased compared to the peaks of 2023 and 2024, it remains higher than usual. This continues to affect the real estate sector:

• Construction and labor costs are still elevated, pushing up the prices of new builds and renovations.
• Families’ purchasing power has declined, making homeownership less accessible.
• As a result, there’s growing interest in more affordable options or homes offering added value, such as energy efficiency or strong transport links.

Interest Rates: A Key Determinant

Interest rates have stabilized after years of increases, but remain higher than buyers would prefer. This means:

• Higher mortgage costs.
• Stricter access to credit, especially for young or low-savings buyers.

While there’s hope for a slight drop in rates by year’s end, experts agree that we won’t return to the historic lows of the past decade. Consequently, buyers will need to:

• Adjust their initial budgets.
• Prioritize more affordable properties or emerging areas.

Financing will remain a major hurdle in 2025 real estate transactions.

Housing Demand Evolution in 2025

Shifting Buyer Priorities

Housing demand in 2025 looks very different than in recent years. With remote work becoming more established, buyers are seeking larger homes, ideally in suburban or rural areas near major cities. Natural light, outdoor space, and energy efficiency are now key decision factors.

Sustainability has evolved from a bonus feature to a must-have. More buyers are actively seeking homes that minimize energy use and environmental impact.

Growing Segments

Two clear trends are emerging:

• Rental housing: Demand is growing, especially among younger generations and those unable to secure mortgage financing.
• Second homes: Coastal and tourist areas are seeing increased interest from both national and international investors.

How These Trends Influence Buying and Selling Decisions

Tips for Buyers

Buyers will need a more strategic approach than in previous years. It’s crucial to:

• Carefully assess financial capacity.
• Compare financing options.
• Explore alternative locations offering better value for money.

Choosing energy-efficient homes will not only reduce long-term costs but also increase resale value.

Tips for Sellers

Sellers will need to adjust their pricing expectations. Highlighting key features such as thermal insulation, home office space, solar orientation, and nearby services will be vital.

A well-thought-out selling strategy and professional property presentation will make all the difference in this more demanding market.