With the final quarter of 2025 well underway, confidence is gradually returning across global property markets. According to Aberdeen’s latest Real Estate Connect Q4 2025 outlook, listed real estate investment trusts (REITs) recorded a 6% increase in share prices during Q3, reversing the weaker performance seen earlier in the year. Occupier demand remains steady, and market liquidity has improved following a quiet summer. All major sectors - from offices to logistics - are seeing a gradual rise in transactional activity. The report also notes that an active management approach to listed real estate could help investors capture more consistent returns as global sentiment improves.

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UK Real Estate Market Outlook (Q4 2025)

The UK real estate market continues to exhibit resilient income growth, supported by restricted supply and sustained occupational demand. Aberdeen highlights that limited new development in logistics and industrial sectors is helping maintain rental stability, while selected office and retail assets are seeing renewed investor interest.

Savills reports that regional office markets - particularly in Birmingham, Leeds, and Manchester - are benefiting from occupiers’ ongoing preference for higher-quality, energy-efficient spaces. Knight Frank adds that investor confidence is strengthening as inflationary pressures ease and gilt yields stabilise. Overall, the focus remains on income-led returns rather than capital appreciation.

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European Real Estate Market Outlook (Q4 2025)

Across Europe, markets are showing steady signs of recovery. Aberdeen notes improving liquidity and increased cross-border capital flows, particularly in Southern and Central European markets. JLL’s latest findings point to stronger leasing activity in key cities such as Paris, Madrid, and Milan, supported by stabilising economic indicators.
MSCI data reveals that total returns across European real estate turned positive during Q3 for the first time since 2023, driven by the logistics and residential sectors. Although conditions remain mixed between regions, improving credit availability and lower bond yields are gradually restoring confidence.

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Asia-Pacific Real Estate Market Outlook (Q4 2025)

In Asia-Pacific, underlying fundamentals continue to strengthen, with Aberdeen highlighting upgraded return expectations across prime office and logistics hubs. CBRE’s research shows stabilising office rents in Singapore, Tokyo, and Sydney, alongside robust demand for logistics space in Seoul, Mumbai, and Jakarta.

According to JLL, foreign investment inflows into Japan and Australia remain strong, supported by favourable currency conditions and relatively higher yield spreads. While market performance varies across subregions, the general outlook is one of measured optimism, underpinned by resilient domestic demand and limited new supply.

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North American Real Estate Market Outlook (Q4 2025)

North American real estate continues to demonstrate resilience and stabilising prices. Aberdeen attributes this to the combination of improving liquidity, declining interest rate expectations, and persistent occupier demand. CBRE’s research echoes this trend, with industrial and multifamily sectors showing early signs of renewed momentum, while retail continues to consolidate.

MSCI’s Q3 data shows modest growth in transaction volumes, led by institutional investors seeking high-quality, sustainable assets. ESG compliance and operational efficiency remain key differentiators across markets as investors adopt more selective acquisition strategies.

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Active Listed Real Estate Strategy

The accompanying thematic article from Aberdeen underscores the potential advantages of active management within listed real estate portfolios. By dynamically allocating across geographies and sectors, investors can better capture upside during recovery phases while mitigating rate and liquidity risks.

The Financial Times Property Investment Report supports this perspective, suggesting that diversified exposure across both listed and direct assets can enhance long-term resilience as the global market transitions towards a lower-rate environment in 2026.The Real Estate Connect Q4 2025 series by Aberdeen points to a more constructive global picture. Real estate markets are gradually recovering, supported by improved liquidity, easing inflation, and firmer occupier fundamentals. While regional dynamics differ, the overarching trend indicates that income-driven strategies, selectivity, and active management will likely remain central themes into 2026.

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Sources: Aberdeen Group PLC, CBRE, JLL, Savills, Knight Frank, MSCI, The Financial Times