Real Estate in real time: the cities where real estate flies

In the world of real estate investments, there is a silent but decisive variable: liquidity. There is a lot of talk about profitability, risk, diversification or capital gains, but rarely is an indicator that defines the agility with which a property can be bought or sold without sacrificing price or strategic value brought to the forefront.

Today, while some traditional markets are losing dynamism, others - even in formerly peripheral regions - are gaining speed, volume and transactional depth. Understanding this changing map has become key for institutional investors, developers and fund managers.

What is liquidity in real estate and how is it measured?

Real estate liquidity measures how easy it is to exit (or enter) an investment without substantially altering the market price. Unlike stock assets, real estate is typically illiquid: properties do not sell "in seconds". However, this reality varies greatly by country, city, asset type and economic cycle.

The main metrics used by analysts include:

• Turnover rate: what percentage of the real estate stock is sold in a year.

• Time on market: average number of days it takes to sell a property.

• Absolute transactional volume: total in USD or m² traded in a given period.

• Market depth: number of active players (buyers and sellers).

• Price differentials: gap between the listed price and the effective selling price.

The "Global Real Estate Liquidity Index 2025", prepared by JLL and Real Capital Analytics, establishes an annual ranking based on these variables. In its latest edition, published in April of this year, it identified the cities with the most liquid markets and those that are gaining or losing traction.

The 10 most liquid markets in the world (2025)

• New York (USA)

• London (United Kingdom)

• Tokyo (Japan)

• Paris (France)

• Los Angeles (USA)

• Sydney (Australia)

• Singapore

• Toronto (Canada)

• Frankfurt (Germany)

• Miami (USA)

The United States accounts for 41% of the global volume of institutional transactions. The report highlights that in cities such as New York and Miami, the average time to close transactions in logistics and multifamily assets is only 30 to 45 days, an unprecedented standard even post-pandemic.

Which markets are losing liquidity?

The same study identifies cities where liquidity is being eroded, mainly due to macroeconomic instability, exchange controls, legal uncertainty or a slowdown in demand:

• San Francisco: affected by telecommuting and the flight of technology companies.

• Hong Kong: geopolitical pressure and government restrictions.

• Barcelona: limitations on foreign purchase and rental regulations.

• Santiago de Chile: sharp drop in office and retail volume.

And who is gaining liquidity?

According to Emerging Trends in Real Estate - Global 2025 (PwC & Urban Land Institute), new liquidity nodes are emerging in mid-sized cities made attractive by population growth, regulatory improvement and digitalization:

• Austin, Texas

• Lisbon, Portugal

• Seoul, South Korea

• Dubai, United Arab Emirates

• Mexico City (industrial sector)

These cities doubled or tripled their transactional volume in the last five years, especially in the logistics, middle-income residential and flex space segments.

What is happening in Latin America?

In the region, liquidity levels are very heterogeneous. According to CBRE and Tinsa's Latin America Real Estate Market Report 2025, liquidity depends largely on the segment:

• Industrial and logistics: the most liquid, especially in Mexico (CDMX, Monterrey, Guadalajara), Colombia (Bogota) and Brazil (São Paulo).

• Premium residential: high turnover in Buenos Aires, Lima and Medellín, with a strong presence of local buyers seeking to hedge against inflation or exchange rate restrictions.

• Offices and retail: remain illiquid in most capitals, with high structural voids and low investor appetite.

In Argentina, liquidity is a niche phenomenon: very low in most segments, but somewhat more agile in compact residential developments in neighborhoods with high rental demand. However, factors such as the exchange rate hedge, the lack of credit and the informality of the market limit turnover.

What are the trends impacting liquidity today:

• Tokenization and digitization of assets: allows the sale of small shares of real estate, generating new secondary markets.

• Cross-border platforms: international marketplaces are connecting Asian capital with European and Latin American real estate.

• Regulatory transparency: the existence of digital cadastres, online public registries and clear rules improves confidence and facilitates operations.