REITs in the United States saw an annual total return of **** percent in 2023, according to the FTSE Nareit All Equity REITs index. Nevertheless, in 2022, the index had a negative total return of ** percent. Performance improved for all property types, except for diversified, free standing retail, and infrastructure. FTSE Nareit All Equity REITs index is a free-float adjusted, market capitalization-weighted index of equity REITs in the U.S. In 2023, the index included were 140 constituents, with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. The number of REITs has remained fairly constant in recent years, but the market cap of the REITs sector has increased notably.

In 2023, real estate investment trusts (REITs) underperformed compared to other U.S. benchmarks such as S&P 500 and Nasdaq Composite. The 1-year total return of the FTSE Nareit All Equity REITs index, an index designed to track the performance of the equity REITs market, amounted to ***** percent. The Nasdaq Composite, which was the index with the best performance, had a **** times higher total return during the same period. On the longer run, REITs performed better. Over a 25-year period, the Nareit All Equity REITs index had a compound annual total return of **** percent - higher than any other benchmark.

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REIT Market Size 2025-2029

The reit market size is forecast to increase by USD 372.8 billion, at a CAGR of 3% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing global demand for warehousing and storage facilities. This trend is fueled by the e-commerce sector's continued expansion, leading to an increased need for efficient logistics and distribution networks. An emerging trend in the market is the rise of self-storage as a service, offering investors attractive returns and catering to the growing consumer preference for flexible and convenient storage solutions. However, the market faces challenges as well. Vertical integration by e-commerce companies poses a threat to the industry, as these companies increasingly control the entire supply chain from production to delivery, potentially reducing the need for third-party logistics and storage providers. Additionally, regulatory changes and economic uncertainties can impact REITs' profitability and investor confidence. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed of these trends and adapt to the evolving landscape.

What will be the Size of the REIT Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with various sectors such as retail, industrial, and commercial real estate experiencing dynamic shifts. Family offices, pension funds, high-net-worth individuals, and sovereign wealth funds increasingly invest in this asset class, seeking diversification and stable returns. Market volatility, driven by economic cycles and interest rate fluctuations, influences investment strategies. Artificial intelligence and property technology are transforming the industry, with data analytics and digital platforms streamlining property management, investment, and appraisal processes. Multifamily housing and single-family homes remain popular choices due to their rental income potential and capital appreciation opportunities. Property taxes, inflation risk, and maintenance costs are essential considerations for investors, requiring effective risk management strategies. Net operating income, return on equity, and occupancy rates are critical performance metrics. Regulatory environment and property regulations also impact the market, influencing capitalization rates and shareholder value. Institutional investors explore equity and debt financing, real estate brokerage, and securities offerings to capitalize on opportunities. Property investment platforms, real estate syndications, and property management companies facilitate access to diverse offerings. Green building standards and sustainable development are gaining traction, attracting socially responsible investors. The ongoing digital transformation of the real estate sector, including smart buildings and hybrid REITs, offers new investment opportunities and challenges. Investors must stay informed of market trends and adapt their strategies accordingly.

How is this REIT Industry segmented?

The reit industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeIndustrialCommercialResidentialApplicationWarehouses and communication centersSelf-storage facilities and data centersOthersProduct TypeTriple netDouble netModified gross leaseFull servicePercentageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSingaporeRest of World (ROW).

By Type Insights

The industrial segment is estimated to witness significant growth during the forecast period.The retail and industrial real estate sectors dominate the market, with industrial real estate leading in 2024. The industrial segment's growth is driven by the increasing demand for warehousing space due to the surge in e-commerce and online sales during the COVID-19 pandemic. Supply chain disruptions have compelled companies to lease more warehouse space to store additional inventory, leading to increased occupancy and rental rates. Furthermore, the proximity of fulfillment centers to metropolitan areas caters to the growing number of online consumers. This trend will continue to fuel the expansion of industrial REITs, offering significant growth opportunities for the market. Asset management companies, pension funds, and high-net-worth individuals are increasingly investing in REITs for their attractive dividend yields and potential for capital appreciation. Private equity firms and family offices are also active players in the market, providing equity financing for REITs. Real estate agents and brokers facilitate transactions, while debt

According to Cognitive Market Research, the Global Real Estate Investment Trusts (REIT) market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The industrial segment is the fastest-growing application in the REITs market, largely due to the rapid expansion of e-commerce and the demand for distribution centers and warehouses

Market Dynamics of Real Estate Investment Trusts (REIT) Market

Key Drivers for Real Estate Investment Trusts Reits Market

Growing Demand for Stable Income-Generating Assets to Boost Market Growth

The demand for stable income-generating assets is one of the key drivers of the Real Estate Investment Trusts (REITs) market. Investors increasingly seek predictable cash flows, especially in uncertain economic climates. REITs provide access to a diversified portfolio of income-producing properties, such as office buildings, shopping centers, and residential complexes, offering consistent dividends. This appeal is particularly strong among income-focused investors like retirees or those seeking to reduce risk. Additionally, REITs allow smaller investors to gain exposure to large-scale real estate investments without the need for substantial capital, further fueling market growth. For instance, in November 2023, 1031 Crowdfunding launched the Covenant Senior Housing REIT, Inc., which aims to create new ways for senior living investors to grow their holdings. The newly formed REIT stands as its own company, and 1031 is the REIT’s sponsor. With the launch, 1031 Crowdfunding focused on “exchange-type vehicles” and working with investors interested in “non-correlating assets who want to invest in senior housing”

Rise in Investor Interest for Diversification and Liquidity to Drive Market Growth

The growing desire for diversification and liquidity among investors has contributed to the expansion of the REITs market. Unlike direct property ownership, REITs provide liquidity as they can be traded on major stock exchanges, offering an attractive alternative for those looking for easier access to real estate investments without the complexities of managing properties. This liquidity makes REITs a highly attractive investment vehicle, especially in volatile markets. Furthermore, REITs enable investors to diversify their portfolios across different types of real estate assets, helping to mitigate risks and enhance returns in a well-balanced investment strategy.

Key Restraint for the Real Estate Investment Trusts Reits Market

Impact of Fluctuating Interest Rates to Hamper Market Growth

Fluctuating interest rates represent a significant restraint for the REITs market. When interest rates rise, the cost of borrowing increases, making it more expensive for REITs to finance property acquisitions or development projects. This can limit growth opportunities and reduce profitability. Additionally, higher interest rates tend to make fixed-income investments more attractive relative to REITs, which may cause a shift in investor preferences. The sensitivity of REITs to interest rate changes can lead to price volatility, which could deter some investors from entering or staying in the market, particularly those seeking stable returns.

Key Trends for Real Estate Investment Trusts Reits Market

The Rise of Thematic and Sector-Specific REITs to Draw Targeted Investments

A notable trend within the REIT...

In December 2023, the annual returns of properties owned by listed Japanese real estate investment trusts (J-REITs) stood at **** percent. The figure decreased from **** percent in December of the previous year.

Among the 50 real estate investment trusts (REITs) with the largest market cap, Prologis (PLD) and American Tower (AMT) recorded to the at the top of the list with around ** and ** billion US dollars each. The REITs sector reported a decrease in 2022, with the after the market cap reached record high the previous year. Nevertheless, the year-to-date total returns for all property segments were negative as of September 2022.

The Canadian Real Estate Investment Trust (REIT) industry has faced challenges in recent years. Despite these headwinds, a decline in interest rates spurred by the Bank of Canada has started to positively impact the industry. With reduced borrowing costs, REITs are getting an opportunity to alleviate their financial burdens by financing new acquisitions and refinancing existing debts more economically. As a result, REITs are expected to have a more favorable financial position. However, the easing of bond yields by these lower interest rates is merely compensating for the decreased revenue, making the REITs' dividend yield look more appealing to investors. Through the end of 2025, industry revenue has dipped at a CAGR of 4.4% to reach $9.8 billion, when revenue will climb 4.2%. The residential segment of the REIT market is flourishing as it aligns with population growth and continues to meet housing demands, making it an attractive investment option because of its stability and constant performance. Technology advancements in AI and Proptech are enhancing the REIT sector by providing valuable data sets and optimizing operational efficiency. This improved efficiency invariably leads to decreased operational costs and maximized property values, causing profit to climb. In turn, the enhanced transparency and real-time data access create an increased investor demand, attracting a broader range of investors and strengthening trust in the sector. The industry will return to growth through the end of 2030, with industry revenue climbing at a CAGR of 2.4% to reach $11.0 billion in 2030. Immigration and population growth are expected to continue to shape the Canadian REIT industry. The continued influx of immigrants will strengthen demand for housing and retail spaces, directly benefiting the residential REIT sector. In addition, surging demand for data centers driven by rising cloud adoption, AI workloads and big data will provide REITs with opportunities to diversify portfolios, capture higher yields and reduce exposure to more volatile sectors. However, challenges remain, particularly in the office segment, which is facing declining demand because of the adoption of remote and hybrid work models and may require strategies for repositioning or divesting obsolete assets.

The GCC REIT's Market is segmented based on Country (United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait). The market size and forecasts in value (USD Billion) for all the above segments.

The FTSE Nareit All REITs index rose by about **** percent in 2023, which was less than the Nasdaq Composite, S&P 500, Russel 2000, and Dow Jones industrials indices. In the same period, the U.S. treasury 10-year note increased by **** percent. The FTSE EPRA/Nareit Global Real Estate Index is designed to track the performance of listed real estate companies worldwide.

The infrastructure real estate investment trust (REIT) Prologis was the largest U.S. REIT as of November 2024, with a market cap of almost *** billion U.S. dollars. In 2024, the price to funds from operation (P/FFO) ratio of Prologis was estimated at *****, with 2025 witnessing a slight decline to *****. The REITs sector has grown substantially, with the market cap reaching a record high in 2021. After a difficult year of negative returns in 2022, the year-to-date total returns for all property segments returned to positive grounds in 2023.

The Global Commercial Real Estate industry has declined over the past five years. Specifically, investor confidence slightly declined over the same period as COVID-19 severely constricted demand. As a result, industry revenue is expected to slightly decline an annualized 2.5% to $4.3 trillion over the five years to 2023, including an anticipated increase of 1.6% in 2023 as the economy recovers from the coronavirus pandemic.The growth of a country's economy tends to boost industry revenue since business expansions and higher consumer spending often creates demand for industry services, such as office leasing, sales and brokerage services. The strong expansion of Asian economies through investments and increasing consumer spending have aided revenue growth over much of the current period. However, this industry is dominated by developed economies and, consequently, the global industry's direction is swayed by these regions' economic performance. Political tensions in these markets have affected the level of investment since investors can be discouraged when uncertainty in economic outlooks rises. As a result, the industry is susceptible to turmoil that has a global reach, such as trade conflicts and pandemics. This has contributed to a slight revenue decline during the current period. Consequently, the average industry profit margin has narrowed due to the coronavirus pandemic. More specifically, in 2020, the average industry profit margin, measured as earnings before interest and taxes, dipped to 6.8% in 2023.The industry will rebound over the next five years as investor uncertainty shrinks as the threat of the coronavirus pandemic wanes. Increasing aggregate private investment and consumer spending will drive industry revenue growth as they fuel the expansion of business and retail operations. The global commercial real estate market will increasingly shift investments toward burgeoning countries, such as India and China, where consistent growth will likely be apparent over the coming years. Overall, industry revenue is forecast to grow an annualized 1.3% to $4.6 trillion over the five years to 2028.

As of December 2024, the ten leading lodging and resort real estate investment trusts (REITs) in the United States had a combined market capitalization of about ** billion U.S. dollars. All ** REITs in the list saw their market caps rise in 2024. The largest diversified REIT, Host Hotels & Resorts, Inc., saw its market cap increase from ** billion U.S. dollars to **** billion U.S. dollars between October 2023 and December 2024. The REITs sector declined in 2022 after the market cap reaching a record high. Consequently, the year-to-date total returns for all property segments were negative as of December 2022.

As of December 29, 2024, the ten leading retail real estate investment trusts (REITs) in the United States had a combined market capitalization of about *** billion U.S. dollars. Most REITs in the list saw their market caps increase in 2024. The largest retail REIT, Simon Property Group, saw its market cap rise from **** billion U.S. dollars to **** billion U.S. dollars between December 2023 and December 2024. Despite the REIT sector compressing in 2022, the three year-returns of most REITs remained positive.

As of October 2024, the ten leading mortgage real estate investment trusts (REITs) in the United States had a combined market capitalization of about ** billion U.S. dollars. All REITs in the list experienced an increase in market capitalization in 2024, indicating an optimistic outlook. The home financing mortgage REIT Annaly Capital Management, Inc. saw its market cap increase from *** billion U.S. dollars to *** billion U.S. dollars. According to the source, mortgage REITs generate income from the interest on investments in mortgages and mortgage backed securities of income-producing residential and commercial properties. The REITs sector has grown substantially, with the market cap reaching a record high in 2021. After a difficult year of negative returns in 2022, the year-to-date total returns for all property segments returned to positive grounds in 2023.

As of April 2025, AREIT, Inc. had the highest price per share at ***** Philippine pesos. MREIT of the Megaworld Corporation ranked next with a ***** Philippine pesos share price. AREIT was the first REIT in the Philippines which was publicly listed on the Philippine Stock Exchange in 2020. AREIT is a publicly held company at 34 percent and the remaining shares are owned by its sponsor, Ayala Land, Inc. There are currently * publicly listed REITs in the country.

As of April 2025, Premiere Island Power REIT Corp. had the highest estimated dividend yield at **** percent in the past 12 months. In contrast, AREIT had the lowest estimated dividend yield as of this trading period.