UK-based property, infrastructure and private credit investment firm Gravis shares its insights on the outlook for real estate, infrastructure and private credit in 2025

The UK and European investment opportunities within real assets – both listed and private – promises to be quite exciting in 2025, according to Anthony Curl, chief investment officer (CIO) at Gravis, a London-listed specialist in infrastructure debt.

“We believe we are at the dawn of a super-cycle for renewable energy infrastructure, supported by favourable policies as well as encouraging support mechanisms for emerging technologies,” Curl said in a note. “Beyond sustainable infrastructure, there are also extremely compelling opportunities, whether debt or equity, that exist in other real asset sectors.” 

UK-listed property in 2025
“The outlook for UK-listed property in 2025 is brighter than it has been in years,” according to Matthew Norris, manager of the VT Gravis UK Listed Property (PAIF) Fund.

Key drivers include continued M&A activity, robust equity issuance to fund future growth, and thriving sectors such as purpose-built student accommodation and build-to-rent, which are expected to lead rental growth.

“The sector promises a potent mix of yield, growth, and upside,” Norris said. “With a forecasted 5 per cent dividend yield, 5 per cent growth, and potential 20 per cent capital upside, UK-listed property is well-positioned for the year ahead.” 

“Despite rising debt costs, moderate supply and robust rental demand provide resilience. Investor sentiment is also improving. In late 2024, we saw material fund inflows underscoring growing confidence, a trend likely to persist as the Bank of England rate cuts ease financial pressures,” Norris added.

“2025 is shaping up as a year of opportunity for UK listed property, blending attractive yields, steady growth, and a clear path for capital appreciation. Investors seem ready to seize the moment,” he said.

Infrastructure and renewables
“The UK infrastructure sector in 2025 represents the start of a once-in-a-century opportunity to transform the economy and drive towards sustainability,” Phil Kent, advisor to GCP Infrastructure Investments, continued. “Some call it an infrastructure super-cycle; whatever the term, it signals major opportunities for investors.” 

The year ahead is pivotal for realising 2024’s promises, with significant investments needed to modernise networks, decarbonise the grid, and address challenges such as energy intermittency and interconnectivity.

“Labour’s accelerated target to decarbonise the electricity grid by 2030, alongside broader net zero goals, demands rapid action and collaboration between public and private sectors,” Kent continued.

“Enabling factors such as regulatory reform and revenue support models are critical to unlocking private investment. The establishment of the National Wealth Fund and GB Energy will play a vital role in mobilising capital, but execution must match ambition,” he said. “The challenges are immense. Decarbonising hard-to-abate sectors like transport, heat, and industry requires scaling up solutions at unprecedented rates. Yet, for investors, these challenges also signal vast opportunities. As infrastructure adapts to meet sustainability goals, the sector could usher in transformative economic growth.” 

Allocation to private credit could increase in 2025
"Private credit is poised for significant growth in 2025, driven by transformative trends and an improving credit environment,” according to Albane Poulin, head of private credit at Gravis. “Decarbonisation, decentralisation, and digitalisation should provide significant opportunities for private lenders.” 

A recent survey by US-listed Blackstone also finds that almost 80 per cent of respondents expect to increase allocations to private markets in clients' portfolios in 2025.

Several factors underpin Poulin’s optimism. “First, the credit environment is improving,” she said. “Lower interest rates and easing liquidity pressures are expected to boost M&A activity, creating new opportunities for private lenders.” After a spike in default rates during 2024, she anticipates a decline in 2025, particularly in the US in sectors such as healthcare, telecom, and business services. “With inflation moderating and borrowing costs falling, refinancing risks are diminishing, especially for cyclical sectors. This dynamic creates a fertile landscape for private credit,” Poulin said.

“Secondly, allocations to private credit are set to rise. Investors are likely to shift from traditional fixed-income assets, where tight spreads offer minimal additional yield,” she continued. “In contrast, private credit provides superior risk-adjusted returns, greater stability, and less volatility. As interest rates fall, its all-in coupon becomes even more attractive.” 

“Private equity investors, grappling with challenges in exiting investments, are expected to embrace private credit for its predictability and certainty of returns. Pension schemes, too, are likely to increase allocations, particularly in infrastructure debt, which offers predictable income and aligns with government policies promoting private investment in key sectors,” she said.

“Finally, infrastructure remains a compelling focus area,” Poulin continued. “Decarbonisation and energy transition efforts are driving demand for innovative financing solutions, requiring strong technical expertise and a proven track record from managers. Infrastructure loans, particularly those with BB credit ratings, present an appealing risk/reward profile, combining strong collateral with the potential for alpha generation.” 

“Private credit is well-positioned to play a pivotal role in global economic transformation, offering stability, income, and opportunities in the evolving landscape of 2025," Poulin concluded.