1. Indonesia: Sustainability focus boosts Bali’s hotel demand
Helped in part by a focus on sustainability and cultural preservation, the past year’s skyrocketing tourism has piqued the interest of hotel developers and investors in the Indonesian island province of Bali.
Bali’s international visitor arrivals have rebounded sharply from an all-time low of 51 at the height of the pandemic in 2021 to more than 6.33 million at the end of 2024, according to the Bali Hotels Association. Since the pandemic, the tourism and hospitality sectors in Bali, which depends on tourism for more than 65% of its economy, have witnessed major changes that include a rapid rise in commercial property development.
2. UK: Rock stars join opposition to high-density housing project
Growing local opposition to a major London residential tower has grown to include rock stars Mick Jagger and Eric Clapton. It's also testing government plans to increase the stock of affordable housing with high-density developments.
A local planning committee has recommended rejection of developer Rockwell Property’s plans for The Glassmill, calling for 110 homes with 54 units to be earmarked as affordable units on London’s Battersea Bridge. The 28-story project would set a new precedent for tall buildings in the area, and planners’ rejection could place the Labour administration’s views on high-density housing in a harsh spotlight.
3. France: Study finds real estate posts mixed investment returns
Various real estate categories registered mixed results for investment performance during the past five years, especially compared with some non-real-estate assets, according to a prominent French research organization.
Industrial properties such as logistics facilities posted a 6.2% gain for investors over the 2019-2024 period, based on a study by the Institut de l’Epargne Immobilière et Foncière, more commonly known as IEIF, which tracks categories such as savings, buildings and land. Some other real estate categories had losses as high as 7% over the same time, and gold was the only investment category to post a double-digit gain for the five-year span, analysts reported.
4. Germany: Starwood-funded apartment deal signals financing rebound
A debt fund of the American investment company Starwood is financing the purchase of about 6,800 apartments by Orange Capital Partners and One Investment Management from the Adler Group in Germany, a potential signal of a rebound in debt-sourced property financing in what remains a challenging climate.
Sources said the Starwood fund is providing €437 million in the form of a whole loan for the acquisition of 89.9% of the shares in apartments located in 14 cities in Germany’s North Rhine-Westphalia region. According to JLL, the adviser to the buyers on the financing, the deal could have a symbolic effect for the German and European markets, showing debt funds are now competitive and gaining ground among traditional financiers.
5. Canada: Montreal braces for impact of Amazon warehouse closings
Amazon’s planned departure from seven Montreal-area warehouse and distribution spaces and uncertainty surrounding tariffs are clouding the outlook for the region’s industrial property market.
Montreal’s industrial vacancy rate of 5.2% in the first quarter was up by just 0.1% from the previous quarter, after increasing an average of 0.6% in each quarter last year, according to brokerage Avison Young. But analysts said that may change quickly once all of the spaces being vacated by Amazon hit the market. To date, only one of the seven facilities has been put up for rent since the e-commerce giant announced its exit plans in January.
6. US: America’s mall overhaul takes on latest shape in California retail haven
The nation’s largest mall owner is investing millions in upgrades in one of the country’s most in-demand retail hubs, a high-stakes example of how landlords across the United States are remaking aging properties to edge out competitors in attracting tenants and shoppers. Simon Property Group has targeted two major projects for the affluent suburbs of Orange County, California, where retail demand is outpacing the property supply and rents are climbing.
Simon submitted plans for a nearly 50,000-square-foot open-air lifestyle village at The Shops at Mission Viejo, with new additions ranging from large-format stores for growing retailers Arhaus and Uniqlo to open-format restaurant spaces for trendy eateries North Italia and Pacific Catch. A similar multimillion-dollar overhaul is underway at the Indianapolis-based REIT’s nearby Brea Mall, where Simon is converting a former Sears and adjacent parking lots into a walkable outdoor complex that will resemble less of a mall and more of a new urban core for the city when finished.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.