According to the North America chapter of the Insights, Strategy and Analysis (ISA) Outlook 2025 report published by LaSalle Investment Management, real estate in the U.S. and Canada is on the brink of a new cycle. With interest rates decreasing from their peak levels and concerns about economic growth fading, there are also new risks emerging.
LaSalle predicts significant differences between this upcoming cycle and previous ones in both countries. Specifically, interest rates are expected to remain higher which will result in a more gradual recovery of property values. While capital flows into real estate are projected to increase rapidly in 2025, conditions across various sectors and markets will continue to be uneven.
These variations indicate that investing during this next real estate cycle will not be as straightforward as before – it won’t simply be a case of all properties rising with the tide. The ISA Outlook suggests that being selective at different levels such as sector type or specific market location can add value for investors.
The image shows LaSalle Investment Management’s headquarters located at 333 W.Wacker Dr., Chicago.
