This article argues that global listed real estate is due for a recovery, and that certain regions, such as Asia and Europe, are faring particularly well.

The following article is by Rogier Quirijns (pictured below), head of European real estate at Cohen & Steers, an international investment firm headquartered in New York. The article looks at the listed property market, such as real estate investment trusts (REITs) and what he considers to be the opportunities – and certain risks – in the space. The editors are pleased to share these views; the usual editorial disclaimers apply to views of guest writers. To comment, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Rogier Quirijns

After years of US dominance, global real estate is staging a comeback – reshaping investor expectations and allocations. International REITs are outperforming the US for the first time since 2017, led by Asia and Europe. Discounted valuations, healthy supply and demand, maturing sectors, and supportive policies are driving global real estate’s strong rebound, reinforcing why diversification is essential amid varied macro trends and secular growth drivers.

A global comeback years in the making
Global real estate is on pace to outperform US real estate for the first time since 2017. Through the third quarter of 2025, global REITs were up 10.4 per cent, compared with US REITs, which went up 4.5 per cent over the same period. What is notable, given that US markets account for over 60 per cent of global real estate, is how strongly Asia-Pacific, Europe, and emerging markets have performed. Asia-Pacific leads with a 27.4 per cent gain, followed by Europe at 17.9 per cent and emerging markets at 16.2 per cent.

This is in stark contrast to recent history, when the US served as a safe haven while Asia grappled with political turmoil and Europe struggled with slower growth. Over the past five years, US REITs returned 7 per cent annually, while Europe and emerging markets had negative annual returns, and Asia posted just 3.5 per cent returns. 2025 marked a reversal of recent trends. China, which returned nearly 30 per cent on indications growth, has bottomed, and Japan, Spain, Hong Kong, and the Netherlands have all posted returns above 20 per cent.

Importantly, in our view the second half of the 2020s will likely look more like previous decades, with longer-term returns driven by fundamentals, which remain healthy. Historically, US listed real estate annual returns dating back to 1991 show that fundamentals – not sentiment – anchor multi-year outcomes.

From discounted to delivering
Favourable valuations, improving fundamentals, and a positive macroeconomic backdrop are driving the comeback in international markets. Europe and Asia were trading at glaringly discounted valuations at the start of 2025. US REITs began the year trading at a slight premium to net asset values; by comparison, Europe and Asia traded at 23 per cent and 29 per cent discounts. While these discounts have narrowed, international REITs remain relatively attractive.

In Europe and Asia, many alternative sectors with structural and demographic tailwinds, such as increasing demand for data centres and storage to power the AI revolution, and healthcare to support a growing global population of people aged 80+, are still maturing, creating favourable supply-demand dynamics. 

A favourable macroeconomic backdrop, characterised by slowing growth and declining yields, has historically benefited commercial real estate. Falling real yields and elevated inflation expectations have created a particularly supportive environment. As the Federal Reserve resumes rate cuts, listed REITs are positioned to benefit; historically, REITs have performed well in easing cycles. In Europe disinflation has materialised and the ECB has cut interest rates to about 2 per cent – the UK should follow at a slower extent and in Asia there is more stimulus expected outside Japan.

Moreover, REITs have historically outperformed equities following steep multiple discounts. With REITs currently at a -7.7 times discount and the historic median at -0.6x, any reversion towards more typical valuation spreads could meaningfully benefit performance. Historically, these periods of deep relative undervaluation have been followed by strong absolute and relative returns as markets normalise.

Outlook for European REITS
In Europe we see that inflation has stabilised at around the target level of 2 per cent and demand and supply are generally positive in most sectors and countries. The UK has lagged the continent more in the disinflation trend and rate cutting cycle but after the latest UK Budget it looks as though UK gilts can stabilise and inflation should come down this year in the UK. This opens the door for a couple of rate cuts for the Bank of England – possibly to 3 per cent depending on growth and inflation – we do expect muted growth in the UK. This should help to close the large discounts to NAV in the UK – at circa 20 per cent as refinancing costs should come down and investment volumes should start to pick up again. 

Within Europe, Spain and Sweden have the best economic growth outlook for 2026 with possibly also Germany starting to benefit somewhat from the €1 trillion ($1.18 trillion) fiscal packet. France remains a bit at risk also, but it is still part of the European Union and as such we do not see any systematic risk. We do believe that both more cyclical and somewhat defensive sectors do offer opportunities within the different countries on the continent and the UK. 

The sectors we prefer are retail that offers a relatively high yield with external growth opportunities, logistics with (data centre) development upside and relatively good income growth potential. We also see self-storage as an attractive entry point for the medium term and we do like some selective office market exposure – London offices for example.  

In sum, the case for listed real estate is strengthening. With global markets rebounding, the second half of the decade reverting to fundamentals, valuations historically attractive, and macro conditions supportive, investors have compelling reasons to revisit allocations and embrace global diversification.