Empira Research – Q1 2025 on Economy & Real Estate

The year 2024 was marked by economic uncertainty, geopolitical tensions, and a challenging financing environment. While Germany and Austria faced negative growth rates, the Swiss economy proved more resilient. Interest rate cuts by central banks provided initial relief, yet overall macroeconomic conditions remain volatile.

For the real estate market, this environment presents both challenges and opportunities. The phase of rising yields appears to be coming to an end, and stable to slightly declining interest rates are creating new investment prospects. At the same time, the structural undersupply of housing remains a key driver of market dynamics: while the number of building permits continues to decline, demand for housing remains high — particularly in metropolitan areas where rents continue to rise.

On a global scale, divergent trends are emerging. While the U.S. economy continues to grow robustly despite restrictive monetary policy, Europe lags behind expectations with subdued growth rates. Institutional investors are becoming increasingly selective in their strategies, placing a stronger focus on conservative, secured credit solutions and stable residential real estate markets.

With this edition of the Research Quarterly View Economy & Real Estate Q1 2025, we provide a comprehensive analysis of macroeconomic trends and their impact on real estate markets in the DACH region and beyond. Our findings highlight that in a dynamic market environment, new investment opportunities are emerging—particularly in alternative financing structures and structurally growing rental markets.