The outlook for commercial real estate over the next five years is optimistic, according to Deloitte’s annual report for 2025. Following a prolonged phase of economic instability, significant opportunities are expected to arise in the coming year. The report outlines key trends, challenges, and potential growth avenues in commercial real estate, emphasizing the need for sustainable strategies, advanced technological solutions, and a skilled workforce. It provides a framework for how businesses can adapt to these trends and seize emerging opportunities.

According to the survey’s findings, 2025 will be pivotal for the industry, with sustainability, technological innovation, and strategic investments poised to shape success, enabling businesses to stay competitive and expand. Key takeaways from the report include the following:

1. Revenue Growth: Nearly 90% of respondents foresee revenue increases by 2025, with 60% predicting annual growth exceeding 5%. This indicates a renewed confidence in the sector’s financial potential.

2. Budget Expansion and Technology Investments: 81% of executives intend to raise budgets, prioritizing technology and data-focused investments. Technologies like artificial intelligence (AI) are seen as vital for enhancing competitiveness.

3. Macroeconomic Concerns: Executives cite rising interest rates, cybersecurity risks, tax policy changes, and higher capital costs as major threats to financial performance in the next 12–18 months.

4. Promising Sectors: Industrial, residential, and hospitality markets show strong growth prospects, fueled by increasing demand.

5. Sustainability Initiatives: 76% of respondents plan significant energy efficiency upgrades within the next 12–18 months, reflecting a focus on reducing carbon footprints and achieving sustainability goals.

6. Interest Rates and Market Outlook: Despite the ongoing challenge of high interest rates, commercial real estate firms are optimistic about improved financial conditions in 2025, driven by the potential for reduced rates and a recovering market.

7. Mergers and Acquisitions (M&A): Over the next 12–18 months, 68% of respondents plan to boost M&A activity, primarily to enhance their technological capabilities and strengthen competitive positions.

8. Adoption of Emerging Technologies: Artificial intelligence is increasingly being integrated into the sector, with 76% of companies at early adoption or pilot stages. Firms leading in AI implementation anticipate enhanced decision-making processes and greater workforce productivity.