**Hines: Global Real Estate Poised for Accelerated Growth Amid Market Shifts**
Cap rate compression is expected to persist for the long term, as global economic shocks usher in a twin-peak inflation cycle reminiscent of the 1970s, according to Hines’ newly released 2025 Global Mid-Year Outlook. The real estate investment firm forecasts a period of accelerated growth in the sector, drawing parallels to the favorable market conditions seen from 1966 to 1982.
David Steinbach, Chief Investment Officer at Hines, views current market dynamics as a rare generational opportunity for deploying capital in real estate. “Through the ’70s and into the early ’80s, real estate performance accelerated due to income growth driven by scarcity, discipline, and rising replacement costs,” Steinbach explained. “Today, global construction activity has significantly declined compared to historical averages, yet demand has remained resilient.”
He added, “The supply and demand imbalance we’re seeing isn’t theoretical — it’s already influencing market fundamentals and will continue to shape the latter half of this decade. In the short term, these dynamics present an uncommon buying opportunity.”
Hines’ outlook suggests that despite prevailing economic uncertainties, the fundamentals of limited supply and steady demand create a fertile environment for long-term real estate growth.
