Nuveen -Mon, 02/10/2025 - 10:45

Key themes for 2025: Riding the real estate recovery

The painful reset of private real estate seems to be in the rearview mirror, and we expect 2025 to be a good vintage for real estate investment.

Our 2025 outlook highlights our top investment ideas and insights on the global need for housing, the strength of alternative property types, the rebirth of retail and the shifting nature of environmental, social and governance (ESG) considerations.

Riding the real estate recovery

The last two years have been challenging for real estate due to rising interest rates and a market with more sellers than buyers
Global real estate values are showing signs of stabilizing, and total returns have ticked positive
All 21 countries in the MSCI Global Property Index experienced positive total returns for the quarter, the first time in two years

Global opportunities

As 2024 came to a close, the global real estate market seemed to be turning a corner
Office markets remained the most challenged globally, but even within the sector we continue to see significant differentiation
In each region, country and property sector there are opportunities for savvy investors

The next frontier: a global view on data centers

The global data surge has spurred a near insatiable demand for data center space
The global datasphere is projected to reach 181 zettabytes by 2025, nearly 12 times the size it was just 10 years earlier
As a result of a quickly reshaping landscape, we favor development in this sector versus a core strategy

Alternatives in focus

Investors have increasingly turned towards alternative property types to generate diversification and outperformance
The U.S. population aged 75+ years is projected to increase from 8% today to 12% by 2040 which present an opportunity for U.S. medical office
Among the most popular alternative property investments in Europe is self-storage, which has benefited from cyclical and structural drivers post-pandemic
Japan is at the forefront of an aging population and remains the leading market for a senior living strategy

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Nuveen

Nuveen is the asset manager for TIAA, one of the world’s most highly rated and financially stable insurance companies¹. We leverage our deep expertise in partnering with insurance clients to tailor capital-efficient solutions to meet complex portfolio construction needs. Our platform of $1.3 trillion in AUM² offers differentiated investments across private credit and private equity, real assets, fixed income, and responsible investing focused strategies. For more information, please visit www.nuveen.com/insurance.

1. TIAA is one of only three insurance groups in the United States to currently hold the highest possible rating from all four leading insurance company rating agencies: A.M. Best (A++ rating affirmed as of July 25, 2024), Fitch (AAA rating affirmed as of August 26, 2024), Standard & Poor's (AA+ rating affirmed as of May 29, 2024) and Moody’s Investors Service (Aa1 rating affirmed as of May 21, 2025). There is no guarantee that current ratings will be maintained.
2. As of 31 March 2025.

Joseph Pursley, CIMA
Head of Insurance, Americas
Joseph.Pursley@Nuveen.com
445-245-1063

Nuveen, a TIAA Company
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Chicago, IL 60606

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