Expo Real 2025 Recap – Realism Returns
- Gunnar Gombert STRATEGY CONSULTING
- Oct 8
- 2 min read
After three intense days at Expo Real 2025 in Munich, one clear impression remains: the industry feels more open again – but also more realistic. Between cautious optimism and a sober look at the facts, the market appears to be processing recent challenges, yet far from overcoming them.
Market & Capital – Core is back, but valuations lag behind
The long-awaited stabilisation is slowly taking shape. Most research houses and investors report a very gradual but noticeable recovery. Institutional capital – particularly pension funds, insurers, and large fund managers – is cautiously returning. “Core is back” was heard frequently across stands and panels – though still in homeopathic doses.
There is a careful return of capital to retail and office, after years of uncertainty in these segments. Logistics and hospitality remain strong, while residential continues to attract long-term institutional money.
Despite this growing activity, the gap between book values and realistic market prices remains wide. Sellers often cling to outdated valuations, while buyers have adjusted their pricing models to the new cost and interest rate realities. This disconnect will likely continue to shape the transaction market in the coming months.
Debt Markets – More movement, but continued restraint
On the financing side, early signs of improvement are visible: increased liquidity, slightly better terms, and rising LTVs. Non-bank lenders and alternative financing platforms are gaining further traction.
At the same time, many traditional banks remain on the sidelines – often due to balance sheet constraints or regulatory pressure. Yet many expect this level of restraint will not be sustainable. When and how banks re-engage will be a key theme heading into 2026.
Occupier & ESG – New patterns, new priorities
The return-to-office continues to shape location and space strategies. Offices are becoming smaller, more flexible, and higher quality. ESG remains a given – though now approached with more pragmatism.
Fresh impulses stem from AI, digitalisation, and nearshoring – factors influencing not only site selection but also operational and energy decisions.
Notably, many asset holders remain focused on efficiency, with ongoing staff reductions or at least very cautious hiring. Priorities clearly lie in cost control, cashflow stability, and operational performance.
Between momentum and moderation
Expo Real 2025 showed that the industry has regained its sense of realism. Optimism is returning – but measured, rational, and selective.Transactions remain challenging, financing remains nuanced, and operational excellence is more important than ever.
Those who are ready to act with discipline and foresight will find opportunities in a market that is recovering more slowly than hoped – but steadily realigning.