SitusAMC Releases White Papers Exploring Trends and Opportunities in Real Estate Lending & Investing in 2025

NEW YORK, March 12, 2025 /PRNewswire/ -- SitusAMC, a leading independent provider of strategic outsourcing, advisory, technology, and talent solutions to the commercial and residential real estate finance industries, has released two white papers:

Commercial / Residential Real Estate in 2025: Can the Transition to Stability Continue?

Drawing on SitusAMC's extensive experience partnering with leading lenders and investors to help originate, transact, manage and value real estate assets, these papers provide valuable insights into the commercial and residential real estate industries as well as opportunities and challenges in the year ahead. By analyzing key economic indicators, anticipated policy changes, and their potential impact on real estate markets, the papers offer industry professionals the key insights needed to successfully navigate and adapt to the changing landscape.

• Download the Commercial Real Estate white paper:
  https://www.situsamc.com/CREMacroTrends25
  
  
• Download the Residential Real Estate white paper:
  https://www.situsamc.com/RREMacroTrends25

Key Highlights from the White Papers

Stability Ahead: 2025 appears to continue the trend toward stabilization that began last year. After years of volatility driven by the pandemic, rapidly rising interest rates, and heightened inflation, 2024 saw the market begin to stabilize. Expectations are that interest rates have peaked and will give way to less volatility in real estate markets.

"With a stable economy, cooling inflation, and stabilizing interest rates, interest rates should trend flat-to-down in 2025," said Peter Muoio, Senior Director and Head of SitusAMC Insights.

Cooling (But Strong) Economy: Gross domestic product (GDP) is predicted to increase by 2.2% at an annual rate, cooling slightly from 2024 growth rates. Unemployment should remain low, inflation is expected to continue to hover above the Fed's 2% target, and interest rates are projected to decline slightly.

"With interest-rate rises abating in 2024 and the prospect of lower rates ahead, commercial real estate should see growth in originations, securitizations, asset values, and returns," Muoio said. "The outlook for residential real estate is tempered, with originations, securitizations and debt outstanding expected to grow but remain below long-term trends."

CRE Returns Above Average: Total CRE returns turned positive at the end of 2024 and are projected to outperform the long-term average in 2025. However, the office sector will likely continue to struggle as it contends with the ongoing post-pandemic shift in workplace patterns.

Residential Home Sales Will Rise: Home sales are expected to grow slightly in 2025, following a decline in interest rates. However, limited inventory will continue to plague housing market activity.

Political Variability: Additionally, the report delves into the potential effects of federal policies related to immigration, tariffs, Return-To-Office (RTO) mandates, the future of Fannie Mae and Freddie Mac, and the Department of Government Efficiency (DOGE), offering a comprehensive analysis of their economic, labor, and real estate implications.

"Specifics about these policies are constantly changing, with many unknowns," said Jen Rasmussen, Vice President and Head of Market Commentary of SitusAMC Insights. "Not only are policy directives quickly evolving, but legal challenges put their implementation in limbo, making it difficult to determine whether existing policies will merely be delayed or blocked altogether. Even under more certain circumstances, public policies would have complex effects on real estate markets."

Download the White Papers:

• Download the Commercial Real Estate white paper:
  https://www.situsamc.com/CREMacroTrends25
  
  
• Download the Residential Real Estate white paper:
  https://www.situsamc.com/RREMacroTrends25

The white papers are produced by SitusAMC Insights, which provides research, analytical tools, and data products to support enhanced real estate lending and investment decision-making. To learn more visit: https://www.situsamc.com/data-analytics-research 

About SitusAMC

SitusAMC is a leading independent provider of strategic outsourcing, advisory, technology, and talent solutions to the commercial and residential real estate finance industries. The company helps clients identify and capture opportunities in their real estate businesses through industry-leading solutions that drive operational efficiency, increase business effectiveness, and improve market agility across the entire lifecycle of their global real estate activity. For more information visit www.SitusAMC.com

Press Contact:
Andy Garrett
Head of Marketing & Communications
[email protected]

SOURCE SitusAMC