2025 Real Estate Trends and Challenges

The landscape of homeownership and real estate is evolving with several challenges and opportunities in 2025. Many older homeowners in the U.S. are deterred from downsizing due to unadjusted federal capital gains taxes, impacting their retirement savings and contributing to a shortage of starter homes. In the UK, property values can significantly drop due to poor color choices, with potential reductions of up to 10% in property value. In India, although real estate prices saw a significant rise in 2024, the market is expected to stabilize in 2025 with steady growth and potential rate cuts from the RBI. Estate planning is becoming increasingly complex with the Corporate Transparency Act and the sunset of the 2017 Tax Cuts and Jobs Act, requiring proactive strategy adjustments.