Global Listed Real Estate Surpasses US Performance for First Time Since 2017

Global REITs Outperform US Counterparts With 10.4% Growth

In an unexpected twist for the real estate investment community, global listed real estate investment trusts (REITs) have outpaced their U.S. counterparts for the first time since 2017. According to recent data, international REITs posted a robust 10.4% growth through the third quarter of 2025, while U.S. REITs managed a modest 4.5%. This resurgence is largely attributed to favorable macroeconomic conditions, including declining real yields and interest rates. As the world shifts its gaze to international markets, this shift highlights a significant pivot in investor focus. This development signifies not only a change in the performance dynamics between U.S. and global real estate markets but also marks a potential shift in future investment strategies.

Asia-Pacific Leads with a Staggering 27.4% in Gains

Driving the impressive global performance are Asia-Pacific REITs, which have surged by 27.4%. The region, renowned for its robust economic growth and dynamic real estate markets, has become a hotbed for international investors. As per the Wealth Briefing, these markets have witnessed significant capital inflows, buoyed by favorable government policies and a decline in borrowing costs. Investors have been particularly attracted to the region's urban centers, where demand for both commercial and residential properties remains high. This has been compounded by the increasing availability of financing options at attractive rates. The Asia-Pacific's superior performance underscores the opportunities present in emerging markets, challenging traditional investment paradigms that have long centered around Western economies.

Europe Experiences 17.9% Growth Amidst Economic Shifts

Europe has also made a substantial contribution to the global real estate upswing, with REITs in the region climbing 17.9%. This growth comes amidst a backdrop of easing political tensions and improving economic conditions across the continent. According to KIMA TV, European real estate markets have benefited from increased foreign investment, driven by attractive yields and a stable economic environment. Key markets such as Germany, France, and the UK have seen particularly strong performances. As a result, Europe is solidifying its position as a critical player in the global real estate landscape, attracting investors looking to diversify their portfolios beyond traditional U.S. assets.

Emerging Markets See a 16.2% Increase Driven by Investor Enthusiasm

Not to be overlooked, emerging markets have also shown considerable growth, with REITs gaining 16.2%. These markets are set to continue their upward trajectory as investors are increasingly drawn to the high growth potential and undervalued assets they offer. According to ABC 3340, regions in Africa and Latin America are seeing an influx of investment, motivated by strong economic reforms and infrastructure developments. The potential for significant returns is driving many investors to reconsider the risk-reward balance of entering these markets, which have traditionally been seen as more volatile.

Stakeholder Perspectives: A New Era for Global Real Estate

Maya Tarek, a Senior Analyst at RealEstateAbroad.com, emphasizes the shifting sentiment among investors: "The global real estate landscape is witnessing a paradigm shift as investors are looking beyond the U.S. for higher returns. The diversification into international markets is a strategic move to leverage growth opportunities presented by a changing economic climate." This sentiment is echoed by other market analysts who note the increasing role of geopolitical stability and macroeconomic policy in shaping real estate prospects worldwide. Investors are now more inclined to embrace global opportunities, driven by both necessity and the pursuit of higher yields.

Future Implications for Global Real Estate Investors

Looking forward, the continued performance of global REITs suggests that U.S. investors may further diversify their portfolios internationally. This shift could lead to increased capital flows into regions previously underrepresented in investor portfolios. RealEstateAbroad.com analysis suggests that as interest rate dynamics evolve globally, more investors will explore opportunities in Asia-Pacific, Europe, and emerging markets. The implications for the future are profound, potentially reshaping the landscape of global real estate investment and strategy. This trend of outperformance by international REITs highlights the need for investors to remain agile and informed, ready to capitalize on shifting market dynamics.