A year ago, we predicted that 2024 would mark the bottom of the current real estate cycle, and that forecast has proven accurate. While we’re encouraged by the stability of a new government, the Budget, which focused on high taxes and limited growth, has tempered early optimism. Nonetheless, 2024 saw prices stabilise, with some relief from two interest rate cuts – though further cuts are needed for a full recovery.

Looking ahead to 2025, we expect gradual improvements across the market. The fundamentals are strong: there is limited supply and availability of prime assets across the residential, commercial, and rural sectors, combined with rising demand, this bodes well for both rents and capital values. However, geopolitical instability and ongoing risks remain outside all of our control.

We are optimistic as we enter the next stage of the real estate cycle. Further interest rate cuts are expected in 2025, improving project viability and boosting property appeal. With more funding available at lower rates bringing a wider range of buyers back to market, and a continued shortage of prime real estate, we are beginning to see upward price trends heading into the start of the year.

Read each section of the report below.