The real estate market in 2025 is expected to undergo complex changes due to various factors. The current geopolitical risks and disruptions in the global supply chain facing the global economy will also affect the real estate market. These problems may cause material prices to skyrocket, raw material supply and demand to become difficult, and new development costs to soar. In particular, the new economic policy changes and alliance diplomacy resulting from Trump’s re-election in the United States will bring about significant changes in the domestic and international investment environment. Strengthened protectionism and decreased foreign investment are likely to slow down the growth of the commercial real estate market and have a negative impact on the overall investment environment.
Economic experts predict that if international oil prices rise by 30% amid concerns about high inflation and low growth, our country's economic growth rate will fall by 0.2%P, and if China's economic growth rate falls by 1%P below the initial estimate, the world economic growth rate will also fall by 0.2%P. Even in this complex crisis situation, appropriate responses and
Strategy can help you explore new opportunities.
The complex factors of the global crisis
The disruption of the Suez Canal supply chain due to war and the disruption of the Panama Canal logistics network due to climate change are likely to have serious effects on the global supply chain. Accordingly, domestic construction material and raw material prices are expected to rise, which will limit new supply and strengthen the scarcity of existing real estate.
Political variables will also have a significant impact. If Trump’s re-election strengthens protectionism, it could weaken the confidence of domestic and foreign investors and lead to a slowdown in global capital flows. This could also have a direct impact on the domestic commercial real estate market, leading to increased vacancy rates and lower rents.
Strategy for seizing opportunities in crisis
2025 will be a year full of uncertainty, but even in these changes, you can turn the crisis into an opportunity through preemptive response and strategy. If you are considering investing in a building, the following strategies are necessary.
Diversification of revenue structure through change of purpose
New revenue sources can be secured by changing the use of existing buildings to create co-working spaces, hostels, serviced residences, healthcare clinics, etc.
Introduction of smart building technology
Adopting smart building technologies that can increase energy efficiency and reduce operating costs will be an important strategy to increase competitiveness in the long term.
Building a win-win model with tenants
Flexible rental policies and customized contracts can help reduce vacancy rates and generate stable rental income.
The market environment is changing rapidly. If you proactively respond to these changes and have a vision for the future, you will be able to use the crisis of 2025 as a stepping stone for growth.
