The real estate market in 2025 has undergone tremendous changes compared to a few years ago.
In this market environment, investors are most concerned about: Where are real estate opportunities? Can buying a home still guarantee a profit?
New Changes in US Real Estate Policy
- Four Policy Drivers
In 2025, these four policy drivers of the US real estate market have given overseas investors significant excitement. From relaxed immigration policies to the introduction of tax incentives, to favorable infrastructure and interest rate policies, all offer investors unprecedented opportunities.
- Relaxed Immigration Policies
Immigration policies in 2025 are closely linked to real estate investment. They provide high-net-worth individuals with convenient channels for home purchases. Shortened EB-1A immigration wait times and lowered EB-5 investment thresholds are attracting the world's elite to choose "home ownership upon arrival." Specifically, the wait time for the EB-1A exceptional talent visa has been shortened to just six months, and once approved, there are unlimited restrictions on property purchases. Furthermore, the investment threshold for EB-5 investment immigration in rural areas has been lowered to $600,000, enabling the simultaneous application of both home purchase and green card applications. In addition, holders of the L1 multinational executive visa can enjoy the same mortgage interest rates as local residents when purchasing a home.
- Tax Incentives
Under the current immigration policy environment, state governments offer tax policies such as property tax exemptions and corporate income tax incentives, increasing homebuyers' returns and reducing the financial pressure of the homebuying process, effectively increasing their investment returns.
- Housing Revitalization Act
The Housing Revitalization Act, enacted in 2025, provides substantial tax incentives for homebuyers. Overseas investors are also eligible for property tax exemptions. Specifically, first-time homebuyers can receive a tax credit of up to $10,000, and properties held for more than five years are exempt from capital gains tax when resold. This policy undoubtedly saves homebuyers significant money.
- Infrastructure Investment Opportunities
With significant government investment in infrastructure, investors can benefit from the appreciation of property markets along government-planned projects. In New York and Chicago, the government's "15-Minute City" initiative has expanded commuting areas by 50% through suburban rail transit expansion. Furthermore, the rise of tech cities has also driven a boom in the real estate market. For example, the arrival of Tesla's Gigafactory caused land prices around Austin, Texas, to double in just three years.
Furthermore, new energy subsidies offer a 30% federal subsidy discount for properties that install solar panels, while also increasing property valuations by 10%.
Changes in the UK Real Estate Market
The upward trend in the UK property market in 2025 is not accidental, but the result of three key forces: policy, finance, and supply and demand, injecting vitality into the market.
- Stamp Duty Policy Adjustment: Incentivizing Buyers to "Front the Market"
Starting in April 2025, the stamp duty thresholds in England and Northern Ireland will be adjusted, resulting in higher tax costs for homebuyers. This policy change has triggered a "front-running" effect in the market—to avoid higher taxes, many buyers are choosing to complete property transactions before the new policy is fully implemented.
- Bank of England interest rate cut: Unleashing purchasing power and easing monthly mortgage pressure
In early August 2025, the Bank of England unexpectedly lowered its base interest rate to 4%. The most immediate benefit of this move was a decline in mortgage rates. Recent data shows that two- and five-year fixed mortgage rates in the UK have finally fallen back below the 5% mark, marking the first such break since the 2022 "mini-budget" triggered market volatility.
- Scarcity of quality properties: An imbalance between supply and demand supports strong housing prices
Although overall housing inventory has increased slightly compared to last year, high-quality properties remain scarce. Quilter Financial Planner Thomas Lambert explained, "The current market is tight, and buyers have limited options for quality properties. Given this supply and demand dynamic, it's inevitable that housing prices will remain strong." Indeed, against the backdrop of the central bank's interest rate cuts stimulating demand, the shortage of quality properties has become even more pronounced, becoming a key factor driving the housing price rebound.
- Scotland:
Led the UK housing market, house prices saw a 5.9% year-on-year increase, bringing the average house price to £192,000, demonstrating strong market activity.
- Northern Ireland:
Also performed strongly, with house prices rising 5.5% year-on-year and market activity significantly increasing, making it a key growth point within the regional housing market.
- Wales:
Overall performance was relatively stable, with house prices increasing by 2.6% year-on-year. While not as high as Scotland and Northern Ireland, this still maintained a steady growth trend.
- England:
House prices rose by 3.3% year-on-year, but regional disparities were more pronounced. In London, in particular, despite a high overall base, the market recovery was relatively slow due to factors such as stamp duty adjustments, changes in loan costs, and increased barriers to entry. However, property values in core areas remained solid.