As expected, the prices of public and private real estate assets each went their own way in 2022. REITs were hit hard by plummeting global equities, while values continued to move forward in private real estate, continuing the unlisted segment’s longstanding tendency to react slower to shifting economic conditions.

A high correlation between REITs and tumbling stock markets in light of the Russian invasion of Ukraine, rampant inflation and a tightening monetary policy, sent listed values in the United States 27 percent lower for the year, as reflected in the FTSE Nareit All Equity REITs Index. At the same time, underlying property prices gained 6.5 percent, according to the NCREIF Fund Index – Open-end Diversified Core Equity (NFI-ODCE), creating the gap that still largely exists today.

At first glance, this all fits a clear historical pattern. REIT prices remain subject to daily stock market movements that are dictated by changing sentiment, while private real est