Global Listed Real Estate Finds Its Footing Beyond U.S. Borders

After several years in the shadow of rising interest rates and volatile capital markets, listed real estate is showing renewed signs of life—just not where many investors expected. While U.S. real estate investment trusts (REITs) have struggled to regain momentum, publicly traded real estate markets in Europe and parts of Asia have begun to outperform, drawing attention from global investors searching for value, income stability, and diversification.

This shift is not just a short-term market anomaly. It reflects deeper structural, economic, and policy-driven dynamics that are reshaping how international investors view global listed property. From easing monetary conditions and discounted valuations to demographic trends and sectoral shifts, international REITs are increasingly seen as early beneficiaries of a broader real estate recovery.

This article explores the background behind global listed real estate, the reasons international REITs are gaining momentum, how this trend affects investors and everyday people, and what the future may hold.

---

Understanding Global Listed Real Estate

Listed real estate refers to property-owning companies—often structured as REITs—that trade on public stock exchanges. These vehicles allow investors to gain exposure to income-generating assets such as offices, apartments, logistics centers, retail spaces, and data centers without directly owning property.

Globally, listed real estate markets are often tracked by benchmarks such as the , which includes REITs and property companies across North America, Europe, and Asia-Pacific.

Historically, the U.S. has dominated this space, both in terms of market size and investor attention. However, listed real estate markets outside the U.S. have long played an important role, particularly in countries such as Japan, Singapore, Australia, France, and the United Kingdom.

---

A Challenging Few Years for Real Estate

To understand the current resurgence, it is important to revisit what went wrong.

Between 2022 and 2023, global real estate faced one of its most difficult periods in decades. Central banks moved aggressively to combat inflation, driving interest rates sharply higher. Because real estate values are highly sensitive to borrowing costs, listed property companies experienced falling asset values, higher refinancing risks, and declining share prices.

Office properties were hit especially hard as remote and hybrid work reduced demand in many cities. Investors became cautious, capital flows slowed, and real estate stocks significantly underperformed broader equity markets.

While these pressures were global, the severity of the impact varied by region—and that variation is now shaping the recovery.

---

Why International REITs Are Leading the Recovery

1. Monetary Policy Differences

One of the most important drivers behind the outperformance of non-U.S. listed real estate has been the divergence in monetary policy expectations.

In the U.S., interest rates remained elevated for longer, as the focused on ensuring inflation was firmly under control. This prolonged period of tight financial conditions continued to weigh on U.S. REIT valuations.

In contrast, parts of Europe and Asia began signaling a more accommodative stance earlier. Expectations of rate cuts from institutions such as the and continued accommodative policies from the improved sentiment toward property markets that had already priced in significant pessimism.

Lower or stabilizing interest rates reduce financing stress and improve the relative attractiveness of income-producing assets like REITs, especially for yield-focused investors.

---

2. Attractive Valuations Outside the U.S.

Another key factor is valuation. By late 2023, many European and Asian listed real estate companies were trading at steep discounts to the net value of their underlying assets.

In some cases, REIT shares were priced 30% to 50% below estimated net asset value, reflecting years of negative sentiment. For long-term investors, this created a compelling entry point—particularly in markets where rental income remained stable and balance sheets were relatively conservative.

By comparison, U.S. REITs, despite recent weakness, often traded at smaller discounts, leaving less room for a sharp re-rating.

---

3. Sector Composition Matters

Not all real estate is created equal, and international markets often have different sector exposures than the U.S.

Many Asian REIT markets, for example, have significant exposure to logistics, data centers, healthcare facilities, and residential assets—segments supported by long-term structural trends such as e-commerce growth, aging populations, and urbanization.

European listed real estate has also seen strength in residential housing, student accommodation, and logistics, while reducing reliance on traditional office space. This diversification has helped international REITs weather structural changes in how people live and work.

---

4. Currency Dynamics and Global Capital Flows

Currency movements have also played a role in attracting international investors.

Periods of U.S. dollar strength often encourage global investors to seek opportunities abroad, especially when local currencies appear undervalued. For dollar-based investors, foreign REITs can offer both income and potential currency upside if exchange rates normalize over time.

At the same time, sovereign wealth funds, pension funds, and institutional investors have increasingly looked beyond domestic markets to diversify risk, channeling capital into global listed real estate platforms with deep liquidity and transparent governance.

---

Impact on Investors

For individual and institutional investors, the resurgence of international REITs has several implications.

First, it challenges the long-held assumption that U.S. listed real estate must always be the core driver of performance. Global diversification is once again proving valuable, particularly in periods of economic and policy divergence.

Second, the recovery in international REITs has renewed interest in income-oriented strategies. Many non-U.S. REITs offer attractive dividend yields, supported by long-term leases and regulated rent structures, which can appeal to retirees and income-focused savers.

Finally, the improved performance of listed real estate can act as a signal for broader property market stabilization, helping restore confidence across private real estate and infrastructure investments.

---

Effects on Everyday People

Beyond financial markets, the recovery in listed real estate has real-world consequences.

Stronger REIT balance sheets make it easier for property owners to invest in maintenance, sustainability upgrades, and new development. This can improve housing quality, expand logistics capacity, and support the modernization of urban infrastructure.

In residential sectors, particularly in Europe and parts of Asia, stable REIT financing can contribute to the supply of rental housing, student accommodation, and senior living facilities—areas where demand continues to outpace supply.

Employment is another channel of impact. Listed real estate companies support jobs across property management, construction, maintenance, and professional services. A healthier real estate sector can therefore provide broader economic support, especially in cities heavily reliant on property-related activity.

---

Risks and Uncertainties Remain

Despite the improving outlook, risks have not disappeared.

Geopolitical tensions, uneven economic growth, and the possibility of renewed inflation could disrupt the recovery. Office real estate remains under pressure in many markets, and some listed property companies still face refinancing challenges over the next several years.

Regulatory changes, particularly around rent controls, taxation, and environmental standards, also vary widely across regions and can affect long-term returns.

Investors are therefore becoming more selective, favoring companies with strong balance sheets, diversified portfolios, and clear strategies for adapting to changing tenant needs.

---

The Road Ahead for Global Listed Real Estate

Looking forward, many analysts see international REITs as being in the early stages of a multi-year normalization rather than a short-lived rebound.

If interest rates gradually decline or stabilize, listed real estate could regain its traditional role as a hybrid asset class—offering both income and capital appreciation, with diversification benefits relative to equities and bonds.

Europe and Asia are likely to remain key areas of focus, particularly markets with transparent regulations, deep capital markets, and exposure to long-term growth themes. At the same time, renewed strength abroad may eventually support a broader recovery in U.S. listed real estate as global conditions improve.

---

A Broader Shift in Perspective

The renewed momentum in international REITs highlights a broader shift in how investors view global real estate. Rather than treating non-U.S. markets as peripheral, many are now recognizing their role as potential leaders during different phases of the economic cycle.

For global investors—and for the cities, workers, and tenants connected to these properties—the revival of listed real estate outside the U.S. may signal not just a cyclical rebound, but a more balanced and diversified future for the sector as a whole.