The global property market is in transition in 2025. After years of post-pandemic recovery, economic uncertainty, and most governments holding out for a
the Accept Dismiss best moment to act, now several governments are finally in gear when it comes to controlling inflation, stabilizing foreign investment, and stabilizing housing affordability. As an investor, whether domestic or foreign, paying attention to policies on property is no longer optional. It’s required.
Let’s cut through some of the most important real estate news and policy announcements in top investor cities like Singapore, UK, Germany, and the US — and what they really mean for buyers and investors like you.
Singapore: Cooling Measures Reach Their Peak
Singapore took one of the strongest stances in recent years. The government raised the Additional Buyer’s Stamp Duty (ABSD) of foreign buyers to an eye-watering 60% in 2023. The government has not even increased the policy up to 2025, and even though the policy sounds draconian, it is in the context of a bigger picture.
The city-state is dedicated to making owning one’s home a reality for its people, especially young citizens. Foreign investment in private housing has therefore dropped sharply. However, commercial real estate, i.e., offices and industrial space, has seen a modest pickup in interest among institutional investors that are not affected by ABSD.
If you are an overseas investor, you may think of moving into REITs or office space, instead of buying direct residential apartments in Singapore.
UK: UK Housing Market In Squeeze Amid New Rent Control Negotiations
The UK real estate market, especially in London and Manchester, has remained attractive to investors despite the Brexit shock and economic uncertainty. However, rising inflation rates and stagnant wages have led to an affordability crisis.
In consequence, some local authorities are now officially talking of rent controls, especially in the more desirable areas. Though to date no such legislation at a national level has been passed, there is increasing pressure from housing campaigners and MPs to limit private rental prices.
Another significant upgrade: The UK government has reviewed its foreign buyer surcharge and there are early hints at increasing it. It hasn’t occurred yet, but buyers must keep a sharp eye out, particularly when buying a second or third property.
Germany: Tax Reform and Property Law Changes in 2025
The German property market has historically been conservative and stable. The most important reform in 2025 is the implementation of the new Grundsteuer system of property tax. It was introduced to allow better property taxation on an annual basis according to real-time values as opposed to historical values.
For buyers, this means slightly higher annual property taxes in some large cities like Frankfurt and Berlin. Legally, the government has also tightened rental protection to law, limiting how rapidly landlords may increase rent, especially in cities with housing shortages.
Foreign buyers are still welcome, but now the process is documentation-intensive, with additional paperwork for cross-border financing and money laundering screening.
United States: Politics, Interest Rates & Local Policies
United States real estate is constantly evolving as policy choices vary so greatly from state to state. Throughout the year 2025, while federal interest rates start to fall somewhat, states are making their own policies around housing.
For instance, California is pursuing more ambitious changes in zoning to enable more multi-family growth in the suburbs. Florida and Texas are enticing foreign investors with lower tax rates — but also facing resistance to quick appreciation and housing imbalance.
One key federal-level development: FIRPTA reform legislation is still awaiting enactment. If enacted, it would lower the withholding tax on foreign sellers of property to 10% from 15%, and would be a game-changer for foreign investors. But it’s on Congress’s backburner.
Final Thoughts
Property is no longer price, place, and time — now it’s policy, transparency, and timing. Governments in 2025 are actually changing rules to chafe at local demand, protect citizens, and choke off speculative buying.
A good investment can all too easily be a gamble if you’re not on top of the new legal and policy developments if you’re an individual investor or firm going into property.
Keep your finger on the pulse — and your plans fluid.
