Based on supporting fundamentals and decent valuations, we believe the global listed real estate sector is set up to provide for a year of decent high-single-digit returns, in line with longer-term historic averages. Moreover, we believe the defensive and diversification qualities of listed real estate could increasingly be appreciated by investors who wish to limit risk associated with the possibility of further tech sector volatility in 2026.
Global real estate trends continued their positive trajectory into 2025, as anticipated. Key trends included a clear bifurcation in performance between prime and secondary assets, elevated construction costs constraining future supply, and increasingly supportive financing markets. The cooling — but not collapsing — macro environment prompted further rate cuts in the United States. This bolstered real estate financing conditions, stimulated some growth in equity issuance, and drove investment activity and asset recycling throughout
