In a year marked by disinflation, easing interest rates, and global economic recalibration, the European real estate sector is undergoing one of its most complex rebalancing acts in recent memory. But for Farazad Advisory GmbH, a Zurich-based advisory firm known for orchestrating high-value cross-border transactions, this volatility is not a reason to retreat. It is a strategic opportunity.Founded by Korosh Farazad, the firm specializes in matching institutional capital with high-conviction opportunities across hospitality, commercial property, logistics, and urban residential markets across Europe and selectively beyond. Their approach remains grounded in realism, discipline, and data-informed judgment. “Investors are facing lower debt costs, stabilized inflation, and evolving risk signals,” says Farazad. “That does not eliminate opportunity. It sharpens the need for selectivity, insight, and trusted relationships.”
Europe’s Macro Reset, Not a Collapse
The European Central Bank has executed multiple rate cuts since mid-2024, most recently lowering its deposit rate to 2.00 percent in June 2025 and holding steady in July. Inflation has cooled to around 1.9 percent, dipping below the ECB’s 2 percent target for the first time this year. With inflation expected to trend toward 1.6 percent in 2026, monetary policy has entered neutral territory.
This realignment has eased borrowing conditions for well-structured deals and renewed interest in countercyclical segments, especially in hospitality-led mixed-use developments, logistics hubs, and undersupplied urban residential portfolios that remain appealing in capital-constrained markets. Farazad Advisory views this environment not as restrictive, but as clarifying. The removal of excess leverage and speculative bidding has returned focus to fundamentals. Investors who pair patience with precision are now in a position to pursue long-term value, especially in regions where cyclical correction has outpaced actual demand risk.
Tailored Financing & Timing as Competitive Edges
Against tighter capital conditions, Farazad Advisory has emphasized crafting bespoke capital structures, blending senior debt, mezzanine facilities, and equity partners across jurisdictions. These calibrated capital stacks ensure that project timelines and risk profiles are precisely aligned. “We reject the one-size-fits-all approach. We understand that every market and jurisdiction moves to its own beat, presenting unique challenges and opportunities. Our purpose is to be the architects of success, meticulously aligning the capital structure to each project’s specific DNA. That is not just our job. It is our most critical contribution,” explains Farazad.
The firm’s cross-border structuring expertise is especially vital in the current climate, where regulations, currency trends, and tax frameworks shift unpredictably. Farazad Advisory’s advantage lies in its ability to construct flexible terms that withstand these pressures and unlock deal momentum when others stall.
ESG, Regulation & Sophisticated Due Diligence
Institutional investors increasingly prioritize ESG readiness, yet regulatory standards vary widely across Europe. Farazad Advisory serves as a bridge, connecting capital sources with assets that meet compliance thresholds while offering long-term resilience. Their relationships encompass family offices, private equity firms, and credit funds that value both return and readiness.
This diligence extends beyond green certifications. From adaptive reuse to sourcing low-carbon materials, the firm has prioritized investments that align with net-zero frameworks. These practices not only satisfy today’s compliance expectations but also de-risk assets over time as standards evolve.
Outlook: Gradual Acceleration in H2 2025
With inflation stabilizing and interest rate expectations aligned, Farazad Advisory anticipates a pickup in deal flow in the second half of 2025, particularly in repositioning and value-add opportunities. Demand is coming from capital bases abroad, with the Gulf, Asia, and North America continuing to view Europe as a core long-term allocation.
“Uncertainty is not new. It is a constant in real estate,” Farazad notes. “What matters is staying clear-headed, building enduring partnerships, and moving decisively when others pause.” In a market often overrun by noise, Farazad Advisory offers precision, durability, and clarity.
Written in partnership with Tom White
