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Europe's Real Estate: Opportunity Amid Valuation Resets

10/1/2025

42 5 Full Breakdown

Summary

Story summary

Adam Gallistel of CBRE Investment Management says valuation resets and supply constraints create opportunities in real estate.
Europe offers better relative value than the United States, with larger valuation declines and a more favorable occupier outlook.
The United States' essential retail sectors show strong fundamentals post-COVID.
Regulatory changes drive democratization, but retail capital remains procyclical.

History

Historical Context

The 2008 global financial crisis caused U.S. housing prices to plummet by about 30%, revealing vulnerabilities in real estate markets. This crisis led to increased regulatory scrutiny and changes in investment strategies. Today, Adam Gallistel notes a contrasting recovery in European occupier outlooks, highlighting the cyclical nature of real estate and the ongoing impact of regulatory shifts on market dynamics.

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Story summary

Adam Gallistel of CBRE Investment Management says valuation resets and supply constraints create opportunities in real estate.
Europe offers better relative value than the United States, with larger valuation declines and a more favorable occupier outlook.
The United States' essential retail sectors show strong fundamentals post-COVID.
Regulatory changes drive democratization, but retail capital remains procyclical.

1 / 2