Mood brightens ahead of EXPO REAL 2025: Despite interest rates, bureaucracy, and high construction costs, the industry believes in a slow stabilization. Residential remains the key asset class, investors are relying on traditional capital providers, and the US is losing significant ground in the international rankings.

Cautious optimism is spreading

The real estate market has had a turbulent few years: rising interest rates, tighter financing conditions, high construction costs, and political uncertainties have put pressure on the industry. Now there are signs of a cautious shift in sentiment.

The current EXPO REAL trend index, surveyed among 579 exhibitors and visitors to the leading international trade fair for real estate and investment (October 6–8, 2025, Munich), shows an industry that is slowly regaining confidence: 44 percent are optimistic about the situation, 35 percent are neutral, and only 22 percent are cautious.

“The worst is over, and confidence is slowly returning.”

– Stefan Rummel, Managing Director, Messe München

Infobox 1: Market sentiment
> Optimistic: 44%
> Neutral: 35%
> Cautious: 22%
> Forecast for 2026: 42% rather optimistic, only 19% cautious

Interest rate policy and politics remain the biggest risk factors

With 94 percent agreement, respondents see interest rate policy and political conditions as the biggest influencing factors. Bureaucracy, the economy, and capital availability also rank high at over 85 percent.

Infobox 2: Most important risk factors
> Interest rate policy (94%)
> Political conditions (94%)
> Bureaucracy/approvals (85%)
> Economy (90%)
> Availability of capital (89%)

Desire for less bureaucracy

The industry makes no secret of where it sees the greatest leverage: 79% call for less bureaucracy. Other key demands are greater availability of capital (64%) and harmonization of the legal framework in Germany (47%).

Info box 3: Top wishes of the industry
> Less bureaucracy (79%)
> More capital (64%)
> Harmonization of rules in Germany (47%)
> Transformation of existing properties (43%)
> Harmonization of European legislation (42%)

Residential continues to dominate asset classes

“Residential remains the most important asset class.” This is how the survey can be clearly summarized. With 75 percent approval, this sector is once again at the top, followed by care properties (66%) and data centers (63%). Traditional types of use such as offices (11%), retail (10%), and hotels (14%) continue to lose appeal.

Infobox 4: Most important asset classes in 2025
> Residential (75%)
> Care properties (66%)
> Data centers (63%)
> Healthcare real estate (55%)
> Logistics (47%)
> Traditional office/retail space: only approx. 10–14%

Investors: confidence in funds and institutional investors

Respondents see the greatest potential in funds/capital management companies (87%) and institutional investors, family offices and private equity (83% each).

Crowdfunding and small investors, on the other hand, remain marginal (27%).

International markets: USA loses confidence

Europe remains the most important market (80%), followed by Asia-Pacific (64%). The losses in the USA are surprisingly significant, with only 45 percent still considering it relevant – a decline of 21 points compared to 2024. Within Europe, Western Europe (84%) and D-A-CH and Northern Europe (79% each) lead the ranking.

Growth in prime locations in secondary cities

Respondents see the greatest momentum in prime locations in secondary cities (59%), followed by secondary locations in prime cities (52%).

Solutions to the housing shortage

The creation of housing remains the central issue – and the industry has identified clear priorities:

• Better financing conditions (95%)
• Reduction of construction costs (94%)
• Building in existing structures (91%)
• Abolition of expensive building standards (87%)
• Serial construction/modular construction (86%)

The government’s “Bau-Turbo” project fails: only 13% rate it positively, while 27% give it a “poor” or ‘unsatisfactory’ rating.

“EXPO REAL is the place where politicians, real estate and finance experts discuss solutions for affordable housing.”

– Claudia Boymanns, Exhibition Director EXPO REAL

Infobox 5: Keys to solving the housing shortage
> Improve financing (95%)
> Reduce construction costs (94%)
> Promote building in existing structures (91%)
> Simplify building standards (87%)
> Serial construction/modular construction (86%)

Conclusion: Between a new beginning and a wait-and-see approach

The results of the EXPO REAL Trend Index 2025 make it clear that the industry is regaining confidence, but is aware of the unresolved problems. Without a reduction in bureaucracy, cheaper financing, and falling construction costs, this optimism threatens to evaporate.

EXPO REAL offers an international platform for this—and in October will once again serve as a seismograph for the mood in the industry.