Coming off a volatile macroeconomic backdrop for real estate investment trusts (REITs) in 2023, global REITs saw a nearly flat first half of 2024 as investors remained cautious about the pace of interest rate cuts, election uncertainty and economic growth but delivered strong performance in the second half of 2024.
The gains were fairly uniform across Asia and the US as investors begin to factor in cooling global inflation and the beginning of a rate cutting cycle in the US. Many of the headwinds for REITs are turning into tailwinds as we are beginning to see a bottoming of private real estate pricing globally and capital markets and transaction activity increasing significantly.
