JLL: Global real-estate dynamics show shifting demand
In its November 2025 “Global Real Estate Perspective,” JLL noted that “living” (residential housing) remains a major component of overall real-estate markets globally, with shifting investor interest as economic conditions evolve.
In many mature markets (notably in the U.S.), “multifamily” (i.e. apartment-building + rental housing) remains a core investment sector, often representing a substantial portion of investors’ real-estate portfolios.
Implication: Institutional investors continue to treat rental housing as a stable, long-term asset — which will likely mean more new rental-housing supply, more professionally managed rental buildings, and increasing competition in rental markets. This may lead to better housing standards but could also pressure rental prices upward in high-demand areas.
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Rising rents in parts of Europe, but “new lets” are slowing — example: UK
According to a property-market update in November 2025, private rents in the UK rose by 5.7% year-on-year across all tenancies. However, the growth in “new lets” (new rental agreements) has slowed: the increase is only +2.4%, the slowest in four years.
At the same time, the market in the UK shows signs of stabilisation, with modest house-price growth — not surging — according to a separate UK housing-market report.
Implication: While many existing tenants face rising rents, growth in new tenancies is cooling. This may reflect affordability constraints or changing demand (people waiting to buy rather than rent, or households delaying moves). For renters, this could mean some bargaining power over new leases, but for landlords/investors — perhaps pressure to offer incentives or accept lower growth in rental income.
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In markets with falling property prices — more supply, weaker demand — e.g. Tel Aviv, Israel
In Tel Aviv (and broadly in Israel), 2025 has seen a noticeable drop in apartment prices. According to a recent report, Tel Aviv apartment prices fell by over 6% in 2025, with real (inflation-adjusted) losses up to ~8.4%.
The drop is accompanied by growing inventories of unsold apartments — especially in new developments — and weakening investor demand.
Implication: For renters, this could gradually lead to gentler rent growth, especially if some owners shift to renting unsold units rather than selling at a loss. For investors, this signals a cooling — possibly reducing attractiveness of buying-to-rent, but potentially creating opportunities to acquire discounted properties for long-term rental yield.
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Rental-market pressures in Australia as affordability worsens — e.g. Queensland, AUS
A recent report shows that in Queensland, a large proportion of households are under “rental stress.” Nearly half a million households (over 493,000 across 315 postcodes) reportedly struggle to afford basic living costs under current rent levels.
Vacancy rates are extremely low (around 1%), underlining a deep shortage of affordable rental supply.
Implication: Unless new affordable rental housing is developed or governments intervene (e.g. subsidized housing, social housing, rent controls), the rental crisis may intensify. This could drive more social instability, migration pressure towards cheaper regions, and increased demand for co-living/shared housing or smaller units.
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Regulatory & structural changes impacting landlords/tenants — example: in UK tenancy law
In the UK, the regulatory environment is shifting: a new law passed in late October 2025 abolished “no-fault” evictions under Section 21 for many tenants (though the full implementation timetable remains to be defined).
Such changes shift leverage somewhat toward tenants, reducing abrupt evictions and boosting security for renters.
Implication: Landlords may be more cautious: they might raise rents, tighten tenant screening, or prefer shorter-term leases. For renters, the potential upside is better stability and increased leverage when negotiating terms — especially families, long-term occupiers, or people in uncertain jobs.
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📈 What this means for the coming years — broader trends & future outlook
Growth of professionally managed rental housing: As institutional investors continue to back rental housing (especially multifamily), we’ll likely see more large-scale rental complexes, often with better amenities — perhaps a move toward “build to rent.” This can provide more stable rental supply, but also standardize rents at higher levels.
More rental supply in some overheated markets, but affordability remains a challenge: In places with falling prices (e.g. Tel Aviv), expect some of the excess unsold apartments to enter the rental market — gradually relieving pressure on demand. But in places like Queensland or big cities in Europe where demand outpaces supply, rental stress and high rents will remain.
Legal/regulatory pressure shaping landlord-tenant dynamics: As tenant-protection laws expand (as in UK), landlords may become more selective or prefer to limit risk — e.g., shorter leases, or push toward higher-end tenants. This may reduce stock of mid-tier rentals or make getting a lease harder.
Increased demand for alternative rental arrangements: Given rising rents and affordability pressures, more people may turn to shared housing / co-living / house-sharing (especially younger tenants, digital nomads, etc.), or consider more flexible rental options (short-term, partial ownership, hybrid rent-to-own, etc.).
Opportunities for investors willing to adapt: Investors who spot markets where supply overhang exists — and who are willing to hold for rent yields rather than quick sales — may find compelling long-term returns. However, this depends on where governments regulate and how tenant demand evolves.
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🎯 What to watch — key signals & what to monitor in Q4 2025 and 2026
New rental-market reports (like those from JLL, local real-estate agencies, governments) showing supply vs demand balance for rentals.
Changes in housing laws: eviction laws, tenant protections, zoning laws (especially in Europe, North America).
Macro factors: interest rates, mortgage costs, inflation — which impact whether people buy or rent. High rates may push more to rent, increasing demand.
Demographic shifts: remote work, migration, urban-to-suburban moves — affecting demand for bigger homes, shared housing, or different types of rentals (houses vs apartments).
Investor behavior: whether institutional investors ramp up building “build-to-rent” or shift capital away from high-cost markets toward regions with better yield.
