The international real estate market in Q3 2025 is showing signs of stabilization after several years of volatility. Overall, property prices across major cities increased by just 0.5% to 1% year-over-year, while inflation-adjusted values slightly declined. The result is a more balanced market — neither overheated nor in decline.

Real estate transactions have cooled in many leading markets. In London, home sales dropped by around 15% compared to Q3 2024, while New York experienced a similar slowdown due to high mortgage rates and buyer caution. In contrast, Dubai remains an outlier, international buyers continue to fuel demand, with luxury property sales pushing prices up by over 4% this quarter.

While property sales slowed, rental yields continue to attract investors. Cities like Lisbon, Bangkok, and Tbilisi offer returns between 6% and 8%, making them some of the most profitable destinations for long-term property investment. In Tokyo and Singapore, rental demand from professionals and expats keeps occupancy rates high and returns stable.

Each region tells a different story : Europe is entering a phase of stabilization, with fewer speculative transactions and stronger demand for quality and energy-efficient homes. North America continues to face affordability challenges, but top-tier markets like New York, Miami and Toronto remain resilient. Asia-Pacific shows mixed results : Seoul and Sydney are cooling, while Jakarta and Kuala Lumpur maintain steady growth. The Middle East, led by Dubai and Riyadh, stands out as one of the few areas still experiencing robust expansion.

Q3 2025 confirms a global shift in mindset. Real estate buyers are becoming more selective and investors are focusing on long-term stability rather than quick gains. Properties that combine prime location, strong management and sustainable design are the ones driving the market forward.

This analysis is based on Q3 2025 data and market reports from Zawya, M&G Investments and Bayut.