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When I was at university, I learnt one of the great principles of modern finance: A diversified portfolio reduces risk for a given level of return. By mixing assets, you could smooth the ride and still aim for the same target return. It felt like magic. 

The U.S. real estate market stands at an inflection point, with multiple tailwinds converging to create a compelling investment opportunity. Following a significant correction from 2022–2024, the sector has undergone a fundamental reset, establishing a foundation for the next growth cycle. Several key factors now support an optimistic outlook for real estate performance in the years ahead.

After COVID-19 severely disrupted the travel industry, the future of hospitality was uncertain. Business travel stalled, leisure trips were paused, and many questioned whether hotels could recover. However, since the general recovery from the pandemic, the traveling consumer’s mindset has changed, and with it, the hotel industry has recuperated and is positioned to outperform.

As the boundaries between infrastructure and real estate grow ever more hazy, social infrastructure, a hybrid investment theme born at the nexus of the two, is pervading investment portfolios — and becoming more amorphous all the while.

Invesco Real Estate’s European Hotel Fund (EHF) has made its first acquisition in France with the addition of the upmarket 189-room Radisson Blu in Marseille. The off-market acquisition brings the total number of hotels in the fund’s portfolio to 11.

HUMAIN, a global artificial intelligence company based in Saudi Arabia building end-to-end AI capabilities, and AirTrunk have agreed to establish a strategic partnership to build data centers in the kingdom. The initial project involves an approximately $3 billion investment for a data center campus in Saudi Arabia.

Goodman Group has acquired a 45.8-acre infill property strategically located in San Jose – the epicenter of Silicon Valley and the world’s fifth-largest data center market.

Aberdeen Group plc has reached agreement to increase its interest in Tritax Management.

Signal Eurofund Retail Holdco I S.à r.l., a joint venture formed by Signal Capital Partners Limited and Eurofund Group, has received senior secured financing from Nuveen Real Estate.

Landmark Properties has submitted the planning application, for approximately 500 purpose-built student bedrooms slated for development at 120 Suffolk Street in Birmingham, England.

Warburg Pincus and Madison International Realty have formed a $300 million strategic investment partnership.

Institutional investors are responsible for managing large pools of capital on behalf of beneficiaries who rely on them for long-term financial security. Pension funds, endowments, foundations and insurance companies operate under a fiduciary obligation to produce strong risk-adjusted returns with discipline, transparency and efficiency. The challenge is that markets move faster than ever, data volume keeps growing, and stakeholders expect real-time reporting. To keep up, institutional investors need to treat technology not as an optional upgrade, but as critical investment infrastructure that powers better decisions and better performance.

Japan is reigniting its innovation engine. Once a powerhouse in global research and development, Japan saw its share of global innovation slip following the 1990s. Today, the government is making a renewed effort to revitalize its R&D landscape.

Advances in artificial intelligence (AI) have shifted data centers from a niche segment right to the fore, in terms of both demand from end users and demand from investors. So how should investors position themselves in this rapidly evolving but vitally important sector?

Alterra IOS has closed a $150 million loan facility from funds managed by Blue Owl Capital.

Artificial intelligence (AI) in commercial real estate is entering a new phase, moving beyond early explorations and toward targeted, high‑impact use cases that aim to redefine value. JLL's 2025 Global Real Estate Technology Survey, of 1,500-plus senior commercial real estate investor and occupier decision-makers across 16 markets and various industries, reveals while maturity remains low, organizations are prioritizing AI in their real estate technology budgets and piloting projects that go well beyond individual productivity use cases.

EQT Real Estate Logistics Value Fund VI and EQT Real Estate Industrial Core-Plus Fund IV have acquired an 11-building.

Octopus Capital has raised just under £60 million ($80 million) into its Octopus Healthcare Fund from LGPS Central (LGPSC) and Knight Frank Investment Management.

Hyatt Hotel Corp. has entered into a management agreement with Wing Tai Properties and CSI Properties for the first Andaz branded hotel in Hong Kong.

A joint venture formed by Ares Management Corp.’s Ares Real Estate funds and Slate have agreed to acquire a portfolio of 36 Polish properties from Trei Real Estate, an international developer and asset manager. The portfolio is valued at more than €300 million ($349 million).