Global property markets have struggled since 2022, but Tom Leahy of MSCI reports signs of recovery in dealmaking. While overall volumes remain uneven across sectors, large transactions and data center investment are creating momentum. Global data center deal volumes hit a record $54.3 billion in 2025, with construction starts reaching $300 billion.

Investment activity varies widely by region and sector. US and UK industrial markets, along with South Korean offices, show volumes above 10-year averages. However, German offices, UK offices, and French retail remain well below benchmark levels. The count of $250 million-plus deals globally increased from 340 in 2024 to approximately 400 in 2025, with values rising 44 percent year-over-year.

Major players like Blackstone and NBIM are recommitting to offices after substantial value corrections. Meanwhile, corporate real estate transactions fell in 2025 to their lowest level since 2010, reflecting macroeconomic uncertainty and higher capital costs. Data centers stand out as a bright spot, driven by AI adoption and cloud migration. With interest rates easing and structural trends favoring social infrastructure and defense-related projects, MSCI sees potential for continued expansion in 2026.