Real Estate Investment Trust Market to Reach $4,228.72 Billion, Globally, by 2032 at 5.1% CAGR: Allied Market Research (2024)

PORTLAND, Ore., March 28, 2024 /PRNewswire/ -- Allied Market Research published a report, titled, "Real Estate Investment Trust Marketby Type (Equity REITs, Mortgage REITs, and Hybrid REITs), andApplication (Industrial, Commercial, and Residential): Global Opportunity Analysis and Industry Forecast, 2023-2032". According to the report, the real estate investment trust marketwas valued at $2,604.70billion in 2022, and is estimated to reach $4,228.72 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.

Real Estate Investment Trust Market to Reach $4,228.72 Billion, Globally, by 2032 at 5.1% CAGR: Allied Market Research (1)

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124 – Tables
47 – Charts
300 – Pages

Prime determinants of growth

The real estate investment trust market is driven by the integration of advanced technologies such as data analytics and proptech solutions. These innovations enhance operational efficiency, streamline decision-making processes, and provide valuable insights into market trends for REITs. On the contrary, AI has the potential to improve operational efficiency across various real estate sectors such as healthcare and hotels, leading to increased demand for data centers and towers that will provide lucrative growth opportunities to the real estate investment trust (REIT) market in the upcoming years.

Report coverage & details:

Report Coverage

Details

Forecast Period

2022–2032

Base Year

2022

Market Size in 2022

$2,604.70 billion

Market Size in 2032

$4,228.72 billion

CAGR

5.1%

Segments Covered

Type, Application, and Region.

Drivers

AI integration in real estate

Data analytics for capital allocation

Competitive advantage through proptech

Opportunities

Enhanced operational efficiency

Restraints

High initial costsin implementing AI and proptech solutions in real estate

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The equity REITs segment to maintain its leadership status throughout the forecast period

By type, the equity REITs segment held the highest market share in 2022, accounting for more than two-thirdsof the global real estate investment trust market revenue and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the fact that these REITs generate a steady income stream for investors through rents and leases, offering a reliable source of dividend income and long-term capital appreciation. However, the mortgage REITs segment is projected to manifest the highest CAGR of 8.5% from 2023 to 2032. This is attributed to the fact that these REITs provide investors with exposure to the real estate market without the responsibility of owning or managing properties directly. Mortgage REITs typically focus on generating income through interest payments on mortgages, which can be attractive to investors seeking stable returns and passive income.

The industrial segment to maintain its leadership status throughout the forecast period

By application, the industrial segment held the highest market share in 2022, accounting for more than two-thirdsof the global real estate investment trust market revenue. This is attributed to the manufacturing and logistics companies that are increasingly realizing that they do not need to own their real estate, creating an opportunity for industrial REITs to acquire more properties crucial to the industrial sector, such as distribution centers. The rise in online sales has led to an increased demand for warehouse space, while supply chain challenges have prompted industrial companies to lease more space for inventory storage. However, the residential segment is projected to manifest the highest CAGR of 7.7% from 2023 to 2032. This is attributed to the increasing demand for REITs, which offer a diversified portfolio of real estate assets and provide consistent income and capital appreciation to investors. Furthermore, the REIT market has been expanding its product offerings to cater to specific sectors within the real estate industry, such as residential properties. This trend aligns with the growing preference for REITs as a means to invest in real estate without the responsibility of managing or owning the properties directly.

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North America to maintain its dominance by 2032

By region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-third of the real estate investment trust market revenueand is estimated to maintain its leadership status throughout the forecast period. This is attributed to the fact that the market's composition has changed significantly since the Great Financial Crisis, with alternative property types such as data centers, cold storage facilities, cell towers, and healthcare properties comprising 64% of the U.S. REIT market by the end of 2022, according to Bloomberg. Furthermore, REITs have demonstrated robust operational performance and are well-equipped to navigate economic uncertainties, including recessions. However, Asia-Pacific is expected to witness the fastest CAGR of 7.9% from 2023 to 2032. This is attributed to the increasing market capitalization of REITs in the Asia-Pacific region, coupled with the expansion of the REIT universe and the emergence of new markets embracing REIT concepts, which indicates a positive trajectory for the growth of the sector. As more Asian countries plan to introduce their versions of REITs, global investors will have increased opportunities for investment in the region, further fueling the growth of the Asia-Pacific REIT market.

Leading Market Players: -

  • Prologis, Inc.

  • American Tower Corporation

  • Crown Castle

  • Realty Income Corporation

  • VICI Properties

  • Digital Realty Trust

  • Alexandria Real Estate Equities, Inc.

  • Link Real Estate Investment Trust

  • Essex Property Trust

  • SEGRO

The report provides a detailed analysis of these key players in the global real estate investment trust (REIT) market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the real estate investment trust market analysis from 2022 to 2032 to identify the prevailing market opportunity.

  • The marketresearch is offered along with information related to key drivers, restraints, and opportunities.

  • The Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network on the real estate investment trust market outlook.

  • In-depth analysis of the real estate investment trust market segmentation assists to determine the prevailing market opportunities.

  • Major countries in each region are mapped according to their revenue contribution to the market.

  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

  • The report includes the analysis of the regional as well as real estate investment trust market trends, key players, market segments, application areas, and market growth strategies.

Real Estate Investment Trust Market Segments:

By Type

  • Equity REITs

  • Mortgage REITs

  • Hybrid REITs

By Application

  • Industrial

  • Commercial

  • Residential

By Region

  • North America (U.S., Canada)

  • Europe (UK, Germany, France, Italy, Spain, Rest of Europe)

  • Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)

  • Latin America (Brazil, Argentina, Rest of Latin America)

  • Middle East and Africa (Gcc Countries, South Africa, Rest of Middle East And Africa)

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We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Real Estate Investment Trust Market to Reach $4,228.72 Billion, Globally, by 2032 at 5.1% CAGR: Allied Market Research (2)

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Real Estate Investment Trust Market to Reach $4,228.72 Billion, Globally, by 2032 at 5.1% CAGR: Allied Market Research (2024)

FAQs

Real Estate Investment Trust Market to Reach $4,228.72 Billion, Globally, by 2032 at 5.1% CAGR: Allied Market Research? ›

According to the report, the real estate investment trust market was valued at $2,604. 70 billion in 2022, and is estimated to reach $4,228.72 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.

What is the trend in the real estate investment trust industry? ›

The global REIT market is experiencing steady growth. According to the recent market reports, the market size is reaching an impressive $3.5 trillion in 2022 and is estimated to reach USD 4.2 trillion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 2.8% from 2022.

What is the annual return of a REIT? ›

During the past 25 years, REITs have delivered an 11.4% annual return, crushing the S&P 500's 7.6% annualized total return in the same period. Image source: Getty Images. One reason for REITs' outperformance is their dividends.

What is the outlook for a REIT in 2024? ›

After lagging equities the past two years, REITs offer an attractive investment opportunity in 2024. The headwind of higher bond yields and central bank rate hikes is likely to abate and may turn into a tailwind if our view about an impending economic slowdown and decelerating inflation trends is correct.

How big is the REIT market in the US? ›

U.S. REITs own nearly $4.5 trillion of gross real estate as of 2021. Public U.S. REITs own $3 trillion in assets as of 2021. U.S.-listed REITs have an equity market capitalization of over $1.3 trillion as of 2021.

What is the problem with real estate investment trusts? ›

Lack of Liquidity: Non-traded REITs are also illiquid, which means there may not be buyers or sellers in the market available when an investor wants to transact. In many cases, non-traded REITs can't be sold for at least 10 years.

Is it safe to invest in real estate investment trust? ›

Are REITs Good Investments? Investing in REITs is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.

What is the REIT 10 year rule? ›

The 10-Year Transition Rule: Key Requirements

This transition period can provide relief for REITs that would otherwise lose their domestically controlled status solely due to the new look-through rules for nonpublic domestic C-corporations.

What is the 90% rule for REITs? ›

Even with a challenging market, REITs are considered a staple for many investment portfolios thanks to the 90% rule. As the name implies, this rule stipulates that real estate trusts must distribute 90% of their taxable earnings to existing shareholders.

Is it a good time to invest in REIT? ›

Demand is healthy while supply is constrained. And REIT valuations relative to the broader equity market are meaningfully below the historical median. There are three key reasons to invest in listed REITs right now, starting with the fact that REITs have outperformed stocks and bonds when yields and growth move lower.

Why are REITs performing poorly? ›

Here's an explanation for how we make money . More than a year of interest rate hikes by the Federal Reserve pushed down returns on real estate investment trusts, or REITs. While higher rates negatively impacted nearly every sector of the economy in 2022 and most of 2023, real estate was hit especially hard.

Will REITs ever recover? ›

Though 2022 and 2023 were challenging years for REITs, the recovery is likely on the horizon. Edward F. Pierzak is senior vice president of research at Nareit where his primary responsibility is contributing to Nareit's commercial real estate and macroeconomic analysis.

What is the lifespan of a REIT? ›

There is no set lifetime for the trust in most cases. Investors who buy publicly traded shares in a REIT can usually buy as much or little as they like and dispose of the shares when they want or need to. However, if an investor buys a non-traded or private REIT, the investment should be considered illiquid.

Who is the largest REIT owner? ›

The five largest REITs in the United States are: American Tower Corporation, Prologis, Crown Castle International, Simon Property Group and Weyerhaeuser.

What is the highest paying REIT? ›

Best-performing REIT mutual funds: June 2024
SymbolFund name1-year return
CSDIXCohen & Steers Real Estate Securities11.23%
JABGXJHanco*ck Real Estate Securities R610.31%
RRRRXDWS RREEF Real Estate Securities9.01%
BRIUXBaron Real Estate Income7.83%
1 more row
Jun 3, 2024

How many REITs should I own? ›

“I recommend REITs within a managed portfolio,” Devine said, noting that most investors should limit their REIT exposure to between 2 percent and 5 percent of their overall portfolio. Here again, a financial professional can help you determine what percentage of your portfolio you should allocate toward REITs, if any.

What is the prediction for REIT? ›

REIT 12 Month Forecast

Based on 30 Wall Street analysts offering 12 month price targets to REIT holdings in the last 3 months. The average price target is $27.96 with a high forecast of $30.88 and a low forecast of $24.73. The average price target represents a 12.11% change from the last price of $24.94.

What is the performance of the REIT sector? ›

U.S. listed REITs, as measured by the FTSE NAREIT All Equity REIT index, are down 1.3% through the first quarter of this year. By comparison, the market value-weighted S&P 500 is up 10.6%, and the equal-weight S&P 500 has risen 7.9%. Out of the 11 S&P 500 sectors, real estate is the only one that is down year-to-date.

What is the growth rate of REITs? ›

India recorded 6.85 percent year-on-year (YoY) growth in the total leasable area of listed Real Estate Investment Trust (REITs), an increase from 87.6 million square feet (msf) to 93.6 msf between September 30, 2021, and September 30, 2022, according to a report by Windmill Capital, a wholly-owned subsidiary of ...

Do real estate investment trusts do well in recession? ›

REITs allow investors to pool their money and purchase real estate properties. By law, a REIT must pay at least 90% of its income to its shareholders, providing investors with a passive income option that can be helpful during recessions.

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