The 2025 Global Public Real Estate Outlook Report from Hazelview Investments highlights the abundant opportunities in the global public real estate (REITs) market. Despite economic challenges, the report underscores strong fundamentals and appealing valuations in global REITs, offering investors a detailed roadmap for success.
Corrado Russo, the chief investment officer & head of global securities at Hazelview Investments, stated, “The global REIT market is at a pivotal moment, showing resilience and potential for significant gains.”
Looking ahead to 2025, Hazelview’s portfolio managers are optimistic, focusing on strategic active management and sectors poised for growth to provide investors with a vast landscape of opportunities.
2024 recap
In 2024, global REITs saw a rebound in the latter half of the year as central banks cut interest rates and investor confidence increased. Despite some caution from the United States Federal Reserve, REITs closed the year with mid-single-digit positive returns.
Top performers were the U.S. and Australia, with the healthcare and data center sectors leading the way due to strong demand and limited supply.
Strong fundamentals continue
Core property types are benefitting from high occupancy rates and supply constraints, trends that are expected to persist into 2025. Additionally, strategic debt reduction over the years has positioned REITs to take advantage of lower capital costs for acquisitions and debt management.
Valuation opportunities
Global REITs are currently trading at historically attractive valuations compared to global equities. Hazelview’s analysis indicates that they are undervalued relative to their intrinsic value, offering investors an excellent entry point and potential returns.
Key investment themes for 2025
1. Global data center demand is expected to grow due to AI and digital transformation.
2. The senior housing sector in North America is projected to expand as demographics age and supply remains limited.
3. Japan’s recovering tourism industry and declining new supply set the stage for hotel growth.
4. Commercial real estate brokers are likely to benefit from increased transaction volumes and outsourcing trends.
5. Residential real estate in Australia and Germany should see opportunities arising from rental growth and supply-demand imbalances.
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