This report outlines a selective investment approach for global listed real estate, favoring regions like the UK and Europe while cautioning against weak momentum in Asian markets. UBS projects moderate earnings growth for the sector in 2026 despite persistent interest rate and liquidity concerns.
Key Takeaways
- 1.The report maintains a selective approach to real estate equities, favoring companies with strong pricing power and accretive growth while remaining cautious on companies trading at discounts that may become value traps.
- 2.Geographical preferences have shifted; the UK and continental Europe are favored due to receding inflation uncertainty, while Singaporean and Japanese developers are viewed with caution.
- 3.Global listed real estate earnings per share are projected to grow by 10.3% in 2026 and 8.1% in 2027, supported by rental indexation and portfolio acquisitions.
Table of Contents
- CIO View: Listed real estate
- Market review
- FTSE EPRA/Nareit Developed Index
- Preferences
- Our expectations
- Global listed real estate versus equities
- Performance by market
- Historical performance by sector (1)
- Performance by sector (2)
- Upside scenario
- Downside scenario
- Global asset class preferences definitions
- Appendix
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Authors
Thomas Veraguth
Securities
FTSE EPRA/Nareit Developed Index
Themes
Inflation and Interest Rate SensitivityReal Estate NAV DiscountsTransaction Liquidity Risks
Regions
EuropeAsia PacificUnited KingdomUnited StatesJapan